RUONIA Rate Hits 13.68% on Tuesday, Affecting Floating-Rate Bond Coupons

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RUONIA, the reference rate linked to the coupon payments of a significant portion of floating-rate exchange-traded bonds, stood at 13.68% on Tuesday.

RUSFAR ON RUB (Russian ruble overnight secured funding rate) adjusted to 13.7% on Tuesday.

RUSFAR ON CNY (Chinese yuan overnight secured funding rate) was 0.6%.

RUONIA is the unsecured overnight ruble lending rate calculated by the Bank of Russia based on transactions from the top 35 banks. RUSFAR (Russian Secured Funding Average Rate), on the other hand, is a secured funding rate (repo with a central counterparty) calculated by the Moscow Exchange for different maturities (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, however, are key indicators of money market rates and are used for floating-rate 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 to the Bank of Russia in accordance with Bank of Russia Regulation No. 6406-U dated April 10, 2023.

This overview was prepared by Alexei 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.