Russian Government Bond Index MCXRGBI Drops 0.1% to 113.63 Bps on Wednesday

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MCXRGBI Index (Russian government bonds) dropped by 0.1% on Wednesday, reaching 113.63 basis points.

Below is the trading dynamics of the most liquid Federal Loan Bonds (OFZ):

- OFZ series No. 26247: -0.1%

- OFZ series No. 26248: -0.2%

- OFZ series No. 26233: -0.1%

- OFZ series No. 26243: +0.1%

Liquid OFZ bonds are typically long-term OFZ issues with fixed coupons (OFZ-PD), such as OFZ 26248 and OFZ 26245, which dominate trading volumes. Additionally, there are bonds with indexed principal (OFZ-IN) and floating coupons (OFZ-PK), each with different characteristics and uses.

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

Key characteristics of liquid OFZ bonds:

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

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

3. OFZ-PK (floating coupon): highly liquid, e.g., OFZ 29014, 29024, 29016.

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