Russia borrowed before the entry into force of the new sanctions in the United States, placing the bonds of the federal loan (OFZ) by a record over the past two months, the nominal reports on the website of the Ministry of Finance.
June 9, two auction was carried out on the placement of OFZ. As a result, nine-year-old paper was placed with a total of 20.9 billion rubles with a total demand of 40 billion. The yield of the issue, the denomination of which is indexed and tied to the rates of inflation, amounted to 2.75 percent per annum.
During the second auction, an OFZ was placed with a period of 10 years and a permanent coupon of 61 billion rubles – with the total demand of 148 billion. The yield of papers was 7.39 percent per annum.
The auctions became the last on June 14, when new US sanctions will be joining in relation to Russia, providing for the ban for American residents on operations with the Russian State Dolgth on the primary market (directly when placed). This became known from the Decree of President Joe Bayiden on April 15.
On the eve of the entry into force of restrictions, the price of Russian OFZ in the secondary market has decreased, and yield, on the contrary, has grown. This is also due to the inflation growing in Russia and investors’ expectations about increasing the key rates of the Central Bank, which will lead to a higher profitability of future pubs.