21 April 2004 09:04
Long-term OFZ follow forex bonds down
MOSCOW. April 21 (Interfax) - Quotes for long-term OFZ bonds slid due to decline on Russia's forex bonds market
as investors became more sure that U.S. interest rates would soon be raised after Federal Reserve Chairman Alan
Greenspan's speech before Congress.
A drop in ruble supply, which led to higher interest rates on the interbank loan market, and continued ruble
depreciation against the dollar, also had a negative impact on the domestic debt market.
"Had it not been for the demand that was not met at auction, prices would have fallen harder," one dealer
said.
The market did see some support with payment of 3.27 billion rubles in GKO 21171 redemption and OFZ coupon
payments.
Most long-term bonds fell 30 to 54 basis points. The exceptions were OFZ-AD 46001 bonds with prices plunging 117
basis points to 112.83% and OFZ-PD 26198 bonds, with prices surging 225 basis points to 91%. Volume for 26198 bonds
totaled just 21.645 million rubles.
Quotes for mid-and short-term OFZ edged up and down in very thin trading.
Weighted average yield for OFZ-FD and OFZ-Ad bonds went up 0.48% to 6.26%. The rise would have been more significant
had yield for OFZ-PD 26198 bonds not dropped by 40 basis points.
There were no GKO deals.
Analysts say yield levels will continue to go up on Thursday.
Trading volume totaled 837.775 million rubles, with over 80% concentrated in the long-term sector.
OFZ-AD 46014 (maturing in 2018) saw the highest trading of 308.692 million rubles.
The Finance Ministry planned three auctions for Wednesday, offering 2.5 billion rubles in OFZ-FD 27025 (maturing
2007), 4.5 billion in OFZ-AD 46001 (maturing 2008), and 6 billion in OFZ-Ad 46003 (maturing 2010). However, all three
were cancelled.
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