The Ministry of Finance of the Russian Federation canceled OFZ auctions due to volatility in financial markets

The Ministry of Finance of Russia will not hold auctions with federal loan bonds (OFZ) on August 16. The reason for the cancellation of auctions is called volatility in the financial markets.

“The Ministry of Finance of Russia, due to increased volatility in the financial markets, informs about the non-holding of auctions for the placement of OFZ on August 16, 2023,” the official site departments. As explained in the ministry, it was decided to cancel the auctions “in order to help stabilize the market situation.”

The price index of Russian government bonds (RGBI), the main indicator of the government debt market of the Russian Federation, falls on August 15 against the backdrop of the decision of the Central Bank to raise the key rate to 12% per annum (this is the maximum rate since May last year).

The last time the Ministry of Finance of the Russian Federation refused to hold such auctions for the placement of OFZs for the same reason was in October last year.

In the second quarter of 2023, the Ministry of Finance of the Russian Federation did not fulfill plan to raise funds in the government securities market. The Office prefers to avoid expensive borrowing whenever possible. In particular, at the last June auction through OFZ with a variable coupon, the Ministry of Finance raised less than 60 billion rubles. with almost five times the demand.

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

Alexander Kislov