RUONIA Rate Hits 13.74% on Tuesday, Impacting Floating-Rate Bond Coupons

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RUONIA, the unsecured overnight interbank lending rate in rubles, which is linked to the coupon payments of a significant portion of floating-rate bonds traded on the Russian stock exchange, stood at 13.74% on Tuesday.

RUSFAR ON RUB (overnight secured funding rate in rubles) adjusted to 14.07% on Tuesday.

RUSFAR ON CNY (overnight secured funding rate in yuan) was 4.18%.

RUONIA is the unsecured overnight lending rate in rubles, 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 (repo with a central counterparty), calculated by the Moscow Exchange for different terms (ON, 1M, 3M, etc.).

The main difference between the two rates is that RUONIA is an unsecured rate, while RUSFAR is based on secured transactions. Both rates are key 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 using 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 Alexei Grishchenko, Ph.D., Professor of Operational and Sectoral Management at the Higher School of Management of the Financial University under the Government of the Russian Federation.