Russian FinMin sells RUB20bn OFZ bonds

The FinMin sold the entire offered amount of RUB20bn at the regular auction on Wednesday with demand reaching an impressive RUB152bn. Interest was stronger for the new floating rate bill maturing in 202, which attracted demand for RUB113.4bn. The ministry sold RUB10bn at average price of 100.18%. The regular 2024 fixed-rate bond attracted bids for RUB38.4bn and the ministry sold the entire offered amount of RUB10bn at 6.99% average yield. This is 14bps below the yield from Aug 7, when the bond was last offered. With this auction OFZ issuance has reached RUB165bn since the start of July compared to a target of RUB300bn for Q3. The target can be missed unless the ministry steps up borrowing, although it is under no pressure to do so after the large overshoot in Q2 when OFZ borrowing reached almost RUB900bn.

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