RUONIA Rate Hits 14.10% on Tuesday, Affecting Floating-Rate Bond Coupons

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RUONIA, the reference rate for floating-rate bonds, stood at 14.10% on Tuesday.

RUSFAR ON RUB (Russian ruble overnight secured funding rate) adjusted to 14.29% on Tuesday.

RUSFAR ON CNY (Chinese yuan overnight secured funding rate) was 0.85%.

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 terms (ON, 1M, 3M, etc.).

The main difference between the two rates is that RUONIA is an unsecured rate, while RUSFAR is a secured rate. Both 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 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, 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.