RUONIA Rate Hits 14.48% on Tuesday, Impacting Bond Coupons

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RUONIA, the reference rate linked to the coupons of a significant portion of floating-rate exchange-traded bonds, stood at 14.48% on Tuesday.

RUSFAR ON RUB (overnight in rubles) was adjusted to 14.47% on Tuesday.

RUSFAR ON CNY (overnight in yuan) was 0.55%.

RUONIA is the unsecured overnight ruble lending rate calculated by the Bank of Russia based on transactions of the top 35 banks. RUSFAR (Russian Secured Funding Average Rate) is the secured funding rate (repo with a central counterparty) calculated by the Moscow Exchange for different tenors (ON, 1M, 3M, etc.).

The main difference between the rates is that RUONIA is an unsecured rate, while RUSFAR is a secured rate. Both are key indicators of money market rates and are used for floating rates in bonds.

RUONIA is calculated based on the reporting data of major credit institutions in form 0409701 "Report on Operations in Foreign Exchange and Money Markets," submitted by credit institutions to the Bank of Russia in accordance with Bank of Russia Regulation No. 6406-U dated April 10, 2023.

This overview was presented by Alexey Grishchenko, Ph.D., Professor of Operational and Sectoral Management at the Faculty of "Higher School of Management" of the Financial University under the Government of the Russian Federation.