Select your city:
Moscow

VTB Bank call center

+7 (800) 200-77-99
+7 (495) 739-77-99
For general information and enquiries

Local sovereign debt: MinFin taps the long end

 
20.05.2015

As we suggested yesterday, MinFin decided to offer long papers to the market, using relatively strong momentum. Today, MinFin is to conduct two auctions, tendering RUB 10bn in fixed-coupon RFLB 28 and RUB 10bn in RUONIA-linked RFLB 17. The news on a new supply pushed the market into negative territory, so the curve slipped 0.3pp price wise, having widened 10bp in yield. The long end underperformed, with auctioned RFLB 28 (YTM 10.55%) down 0.5pp in price. Since April, MinFin has already placed RUB 154bn out of the planned RUB 250bn for 2Q15, so in case of weaker market juncture, we think MinFin would prefer not to place the full amount, rather than to pay a premium to the secondary market.

Maxim Korovin, Tatiana Zueva
VTB Capital analysts

Tags:
OFZ

Back to the list



VTB group news subscribe
  • E-mail subscribe
  • RSS lent
    Subscribe
    Subscribe
Download the list of cities.....