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 Reach 113.15 Basis Points

Trading activity for the most liquid Russian federal government bonds:

- OFZ Series No. 26247: -0.1%

- OFZ Series No. 26248: +0.1%

- OFZ Series No. 26233: -0.1%

- 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 account for a high proportion of trading volume. There are also issues with an indexed nominal value (OFZ-IN) and variable coupons (OFZ-PK), each with different characteristics and suited to different purposes.

Key characteristics of liquid OFZ bonds:

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

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

3. OFZ-PK (floating coupon): Highly liquid, for example, OFZ 29014, 29024, 29016.

Analysis provided by Aleksey Grishchenko, Ph.D., Professor of Operational and Sectoral Management at the Higher School of Management, Financial University under the Government of the Russian Federation.