Finance Ministry to resume OFZ auctions after a week-long pause – Kommersant

On August 23, the Ministry of Finance will hold auctions for the placement of two issues of federal loan bonds with a constant coupon income (OFZ-PD) and federal loan bonds with an indexed par value (OFZ-IN), the department.

“The volume of satisfaction of bids at each auction will be determined based on the volume of demand, as well as the size of the premium requested by the participants in relation to the profitability levels actually prevailing on the market. Applications for auctions can be submitted through PJSC Moscow Exchange and (or) JSC SPVB,” the Ministry of Finance said in a statement.

The Ministry of Finance did not hold traditional government bond auctions last week due to increased volatility in financial markets. The last time before that, the agency took a break in the placement of government bonds in September-October 2022, also referring to market volatility.

Federal loan bonds are issued by the Ministry of Finance and give a yield higher than a bank deposit and are considered the most reliable securities on the Russian stock market. Their reliability is ensured by the fact that the state itself acts as a guarantor of the return of money under OFZ: it is liable with all its property. The government issues federal bonds to cover temporary budget deficits. In the second quarter of 2023, the Ministry of Finance failed to fulfill the OFZ placement plan.

Details – in the material “Kommersant” “They cut the bonus from the plan”.

Alexander Kislov