Page 99 - RusRPTMar19

8.5.1 Fixed income - bond news
The Ministry of Finance held its most successful OFZ treasury bond auctions since 2015 on February 27, placing securities worth RUB57.6bn. At the first auction the ministry placed six-year OFZs in the amount of RUB35.1bn, while the demand for securities reached 46.7bn. The weighted average yield was 8.23% per annum. At the Moscow stock exchange by the close of the same day this issue was trading at a yield of 8.2%. A few hours later, another auction was held for the placement of 11-year securities: the Ministry of Finance sold OFZ for RUB22.5bn with the demand of RUB29bn. The weighted average yield was 8.46% per annum, on the stock exchange this issue was traded yesterday with a yield of 8.42% per annum. The placements come after foreign investors sold off some RUB500bn worth of OFZ last year on sanctions fears and saw the share of foreign investors in the bond fall from a record 34% in April to just under 25% by the end of the year. Demand was so poor that the Ministry of Finance had to cancel several auctions towards the end of the year and yields climbed to touch on 9%. The OFZ is the main work horse for funding the government and the Ministry plans to more than double the amount it issues in 2019 to RUB2.5 trillion.
99 RUSSIA Country Report March 2019 www.intellinews.com