Russian Bond Index Dips 0.1% to 113.15 Basis Points on Monday

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MCXRGBI Government Bond Index Dips 0.1% on Monday to 113.15 Basis Points

Trading activity on the most liquid Russian federal government bonds:

- OFZ Series No. 26247 -0.1%

- OFZ Series No. 26248 -0.2%

- OFZ Series No. 26233 -0.1%

- OFZ Series No. 26243 +0.1%

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

The most liquid OFZ (Russian federal government bonds) are typically long-term issues with fixed coupons (OFZ-PD), such as OFZ 26248 and OFZ 26245, which account for a large share of trading volume. Additionally, there are bonds with an adjustable nominal value (OFZ-IN) and variable coupons (OFZ-PK), but these have different characteristics and are suitable for different purposes.

Key characteristics of liquid OFZ:

1. OFZ-PD (fixed coupon) - most in demand due to predictable coupon payments, for example, issues maturing in 2034-2041.

2. OFZ-IN (indexed nominal value) - protect against inflation, but their yield is realized at maturity or sale.

3. OFZ-PK (floating coupon) - have high liquidity, for example, OFZ 29014, 29024, 29016.

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