The Ministry of Finance has limited the volume of placement of OFZ to strengthen investor confidence
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During today’s unlimited auctions, the Ministry of Finance placed federal loan bonds (OFZ) for a total of 42 billion rubles. (with aggregate demand at the level of 537 billion rubles). The ministry explained this policy by the discrepancy between the demand for OFZs and the state of the Russian economy and market conditions.
“It was decided to limit the volume of satisfied applications. We hope that this decision will strengthen investor confidence and reduce the volatility of trading in the secondary market,” the ministry’s press service said in a statement. The text notes that all recent OFZ auctions attracted “solid interest” from investors, but the price conditions for demand for bonds did not meet the requirements of “price, financial and budgetary stability.”
From the end of October, the Ministry of Finance holds large-scale borrowings in the debt market, as a result of which the ministry managed to attract 167 billion rubles to the budget. following the results of three auctions last week. In this regard, investors demanded that the Ministry of Finance place OFZs at a high rate (increased premium in the case of bonds with a constant coupon amounted to 54 bp).
Read more about attracting funds by the Ministry of Finance in the debt market – in the material “Kommersant” “The Ministry of Finance rewarded investors”.
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