Russia began to occupy for future

The Russian Ministry of Finance began to actively borrow money for the future, raising the release of 20-year-old bonds of the Federal Loan (OFZ), writes Kommersant. And the volume of accommodation, and the demand for paper turned out to be recorded in recent months.

On August 18, the Ministry of Finance posted another IPZ production in the amount of 125 billion rubles – with a total demand for 231 billion. Both indicators became the highest since April. About 30 billion attracted funds had to be bonds with a period of 20 years – against 20 billion weeks earlier.

According to the analysts respondents, the government has recently actively and consciously goes to elongation of debt. They also note that, despite the significant demand from investors, the Ministry of Finance offers a premium both to the secondary market and for previous issues – in the amount of 4-6 and 15 basis items, respectively.

Accommodation on such large volumes has become possible largely due to the repayment of the bonds of the previous issues in the amount of 290 billion rubles. At the same time, buyers made not only Russian residents, but foreigners, which is especially important against the background of US sanctions, prohibiting American buyers to participate in the placement of OFZ.

Integrately, demand was caused by expectations for further decline in key rates as a result of a decrease in inflation. This will directly affect the source of the OFZ coupon, dropping out of yield.

/Media reports.