RUONIA Rate Hits 13.89% on Tuesday, Affecting Floating-Rate Bond Coupons

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RUONIA, the benchmark rate to which coupons of a significant portion of floating-rate exchange-traded bonds are linked, stood at 13.89% on Tuesday.

RUSFAR ON RUB (Russian ruble overnight secured funding rate) adjusted to 13.82% on Tuesday.

RUSFAR ON CNY (Chinese yuan overnight secured funding rate) was 0.25%.

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), on the other hand, is the secured funding rate (repo with a central counterparty) calculated by the 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 rates, however, are important indicators of the cost of money in the market and are used for floating rates in bonds.

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

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