RUONIA Rate Hits 14.09% on Tuesday, Affecting Floating-Rate Bond Coupons

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RUONIA, the benchmark rate to which coupons of a significant portion of exchange-traded floating-rate bonds are linked, stood at 14.09% on Tuesday.

RUSFAR ON RUB (overnight in rubles) rose to 13.96% on Tuesday.

RUSFAR ON CNY (overnight in yuan) was 0.95%.

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) is the secured funding rate (repo with a central counterparty) calculated by Moscow Exchange for different tenors (ON, 1M, 3M, etc.).

The main difference between the rates is that RUONIA is an unsecured rate, while RUSFAR is based on secured transactions. Both are key indicators of money market rates and are used for floating rates in bonds.

RUONIA is calculated based on the financial reports of major credit institutions submitted to the Bank of Russia under Form 0409701 "Report on Operations in Currency and Money Markets" in accordance with Bank of Russia Regulation No. 6406-U dated April 10, 2023.

This overview was prepared by Alexei Grishchenko, Ph.D., Professor at the Department of Operational and Sectoral Management of the Faculty of "Higher School of Management" at the Financial University under the Government of the Russian Federation.