In the next three months, the Ministry of Finance aims to borrow RUB 275bn vs. RUB 246bn secured in 2Q15. There are to be 14 auctions, meaning an average weekly offering size of around RUB 20bn. The government continues to see mid-term notes with a maturity of up to five years as the primary instrument; RUB 150bn is booked under it.
Meanwhile, for tenors between five and ten years, the plan is RUB 95bn, with only RUB 10bn for the longest end. We think that the size would be nearly equally split between FRNs and bullet issues. However, the debut issue of the inflation protected notes goes above the line. Today, the ministry is to offer RUB 15bn in RUONIA-linked bonds maturing in December 2017. We expect decent demand. The secondary market was fairly dull, yesterday. OFZs opened marginally in the black but prices moved up only 0.1-0.2pp along the whole curve.