02 June 2004 17:12
GKO TRADING EXCEEDS OFZ VOLUME
MOSCOW. June 2 (Interfax) -GKO trading volume exceeded OFZ trading volume on Wednesday for the first time this
year.
Trading has been very light in the GKO sector in 2004, but analysts
attribute this not to a lack of demand but to restricted supply. The
There were 13 deals with GKO 21172 bonds totaling 988.061 million rubles, compared with OFZ trading volume of 300.274
million rubles.
Finance Ministry has only once held a GKO auction, offering 4 billion rubles on February 18. It then placed 3.96
billion rubles in GKO 21172 bonds (maturing in August 2004). Demand at the auction topped 14 billion rubles.
The results of Wednesday's OFZ auctions, with two out of three not taking place, had a negative impact on the
OFZ market.
The Finance Ministry planned to offer 4 billion rubles in OFZ-FD 27025, 8 billion rubles in OFZ-AD 46002, and 6
billion rubles in OFZ-AD 46003. But the OFZ-AD 46002 and 46003 were acknowledged as invalid.
In the OFZ-FD 27015 auction, 853.06 million rubles worth of the bonds offered were sold. Demand totaled 4.56 billion
rubles at face value. The weighted average price was set at 101.8077% of face value, corresponding to 6.71% yield. The
cut-off price was 101.653%, corresponding to yield of 6.77%.
Volumes with other OFZ bonds did not exceed 20 million rubles.
Banks received over 15 billion rubles on Wednesday from the
The ministry offered dealers a yield premium against the secondary market of over 30 basis points, but most investors
considered this to be insufficient.
OFZ-FD 27014 (maturing in December 2004) saw the highest volume among the OFZ bonds of 144.927 million rubles.
Weighted average prices climbed 11 basis points to 104.19%. OFZ-AD 46002 (maturing in 2012) saw the second highest
volume of 54.59 million rubles and OFZ-AD 46001 (maturing in 2008) the third highest.
Prices went up 14 basis points to 108.61% for 46002 bonds and fell 45 basis points to 110.5% for 46001 bonds.
redemption and last coupon payment on OFZ-FD 27013 bonds. Considering this and the cancelled auctions, the thin
trading reflects low demand on the primary and secondary OFZ markets due to unappealing yields.
Weighted average yield for OFZ-FD and OFZ-AD bonds was 6.81%, compared with 6.57% Tuesday.
[Interfax] |
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