The unlimited auction of federal loan bonds with indexed par value (OFZ-IN) was declared invalid by the Russian Ministry of Finance due to the absence of bids at acceptable price levels. According to the Ministry of Finance’s press office, the department intended to place OFZ-IN 52005 at the auction with a maturity date of May 11, 2033, and balances available for placement in the issue amounting to 342.82 billion rubles. Initially offered on March 15, these bonds were placed for 7.27 billion rubles at a weighted average price of 95.3%, and a yield of 3.06%. However, the auction today (March 22) was successful for the placement of OFZ-PD 26242 with a constant coupon income. The placed volume of the issue amounted to 15.3 billion rubles, with the cut-off price at 95.5% of the face value, and the weighted average yield per annum was 10.18%. On February 22, the Ministry of Finance had also declared the void of the unlimited auction for the placement of OFZs with a constant coupon income of the 26240 series maturing in July 2036 due to the lack of bids at acceptable prices. The author of this report is Erdni Kagaltynov.
The Russian Ministry of Finance declared the unlimited auction of federal loan bonds with indexed par value (OFZ-IN) invalid due to the lack of bids at “acceptable price levels”, reported press office Ministry of Finance.
The department wanted to place at the auction OFZ-IN 52005 with maturity on May 11, 2033 in the amount of balances available for placement in the issue – 342.82 billion rubles. For the first time, these bonds were offered at an auction on March 15 and were placed for 7.27 billion rubles. at a weighted average price of 95.3% and a yield of 3.06%.
Today, March 22, successfully passed unlimited auction for the placement of OFZ-PD 26242 with a constant coupon income. The placed volume of the issue amounted to 15.3 billion rubles, the cut-off price was 95.5% of the face value, and the weighted average yield was 10.18% per annum, the Ministry of Finance reported.
On February 22, the Ministry of Finance also declared void the unlimited auction for the placement of OFZs with a constant coupon income of the 26240 series maturing in July 2036 due to the lack of bids at “acceptable price levels”.
In conclusion, the Russian Ministry of Finance faced another unsuccessful auction due to the lack of bids at acceptable price levels for their federal loan bonds with indexed par value. This further highlights the challenges faced by the government in raising funds to meet budget requirements. However, there was some positive news as the unlimited auction for the placement of OFZ-PD 26242 with a constant coupon income was passed successfully. The ministry will continue to explore various options to meet their financial objectives in the upcoming auctions.