Russian bond index MCXRGBI falls 0.6% to 116.60 basis points on Monday

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MCXRGBI Government Bond Index Falls 0.6% on Monday to 116.60 Basis Points

Trading activity in the most liquid Russian federal government bonds:

- OFZ Series No. 26247: -0.2%

- OFZ Series No. 26248: -0.4%

- OFZ Series No. 26233: -0.4%

- OFZ Series No. 26243: -0.5%

The MCXRGBI index serves as a key indicator of the Russian debt market, reflecting the dynamics of the entire spectrum of government securities.

OFZ (Russian federal government bonds) are typically long-term issues with fixed coupons (OFZ-PD), such as OFZ 26248 and OFZ 26245, which have a high trading volume. Additionally, there are inflation-indexed bonds (OFZ-IN) and floating-rate bonds (OFZ-PK), each with different characteristics and purposes.

Key characteristics of liquid OFZ bonds:

1. OFZ-PD (fixed coupon): Most in demand due to predictable coupon payments, e.g., maturing in 2034-2041.

2. OFZ-IN (inflation-indexed): Protect against inflation, but yield is realized at maturity or sale.

3. OFZ-PK (floating coupon): Highly liquid, e.g., OFZ 29014, 29024, 29016.

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