Russian bond index falls 0.1% to 115.36 basis points on Monday

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In Monday trading, the Russian Government Bond Index (MCXRGBI) dropped by 0.1%, settling at 115.36 basis points.

Trading activity for the most liquid Federal Loan Bonds (OFZ) was as follows:

- OFZ series No. 26247: -0.1%

- OFZ series No. 26248: +0.1%

- OFZ series No. 26233: -0.2%

- OFZ series No. 26243: -0.1%

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

Most liquid OFZ bonds are typically long-term issues with fixed coupons (OFZ-PD), such as OFZ 26248 and OFZ 26245, which have a high share in trading volume. Additionally, there are issues with an indexed nominal value (OFZ-IN) and variable coupons (OFZ-PK), each with different characteristics and purposes.

Key characteristics of liquid OFZ bonds:

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

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

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

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