Russian Government Bond Index MCXRGBI Drops 0.1% to 111.33 bps on Wednesday

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MCXRGBI (Russian government bonds index) is down by 0.1% on Wednesday, currently standing at 111.33 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 typically include long-term fixed-coupon issues (OFZ-PD), such as OFZ 26248 and OFZ 26245, which dominate trading volumes, as well as inflation-indexed bonds (OFZ-IN) and floating-rate bonds (OFZ-PK), each with different characteristics and uses.

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

Key features of liquid OFZ bonds:

1. OFZ-PD (fixed-coupon bonds) are the most popular due to predictable coupon payments, for example, issues maturing between 2034 and 2041.

2. OFZ-IN (inflation-indexed bonds) protect against inflation, but their returns are realized only at maturity or sale.

3. OFZ-PK (floating-rate bonds) have high liquidity, such as OFZ 29014, 29024, 29016.

Reviewed by Alexey Grishchenko, Ph.D., Professor at the Department of Operational and Sectoral Management, Faculty of "Higher School of Management", Financial University under the Government of the Russian Federation.