RUONIA Rate Hits 14.20% on Tuesday, Affecting Floating-Rate Bond Coupons

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RUONIA, the reference rate for floating-rate bonds, reached 14.20% on Tuesday.

RUSFAR ON RUB (Russian ruble overnight secured funding rate) adjusted to 14.05% on Tuesday.

RUSFAR ON CNY (Chinese yuan overnight secured funding rate) stood at 0.01%.

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

The key difference between the two rates is that RUONIA is an unsecured rate, while RUSFAR is based on secured transactions. Both are critical indicators of money market rates and are used for floating-rate bonds.

RUONIA is calculated based on reports from major credit institutions submitted to the Bank of Russia in compliance with Bank of Russia Regulation No. 6406-U dated April 10, 2023.

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