Russian Bond Index Dips 0.3% to 113.51 Basis Points on Monday

© ООО Региональные новости

The MCXRGBI index dropped by 0.3% on Monday, reaching a level of 113.51 basis points.

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

- OFZ series No. 26247: -0.2%

- OFZ series No. 26248: -0.3%

- OFZ series No. 26233: -0.5%

- OFZ series No. 26243: -0.2%

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

The 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. There are also issues with an indexed nominal value (OFZ-IN) and variable coupons (OFZ-PK), but they have different characteristics and are suitable for different purposes.

Key characteristics of liquid OFZ bonds:

1. OFZ-PD (with fixed coupon) - the 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 maturity 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 "Higher School of Management" Faculty at the Financial University under the Government of the Russian Federation.