16 June 2004 08:32
OFZ prices rise in light demand
MOSCOW. June 16 (Interfax) - Prices for most OFZ bonds went up Wednesday due to light demand.
The Finance Ministry planned to offer 6 billion rubles in an additional issue of OFZ-AD 45001 bonds on Wednesday, but
the auction was acknowledged as invalid, reflecting the low demand. The bonds mature on November 15 2006.
Not even the payment of over 2.8 billion rubles in OFZ coupons on Tuesday could rouse up demand at auction.
Some of the money that had been reserved for the auction may have gone to the secondary market and led to a rise in
prices, dealers say. Trading volume was slight at 153.662 million rubles.
Dealers attribute the thin trading to a ruble deficit in the banking system. The shortage was indicated by high
interbank loan market rates, which were at 10%-15% on Wednesday, a drop in correspondent account balances to 141.2
billion rubles, and the day's direct repo auctions.
Most trading was concentrated in the OFZ-AD section. OFZ-Ad 46001 and OFZ-AD 46002 were most heavily traded with
volumes of 58.69 million rubles and 45.9 million rubles, respectively. Quotes for 46001 bonds (maturing in 2008) climbed
3 basis points and quotes for 46002 bonds (maturing in 2012) rose 31 basis points. Yield for the bonds was 7.32% and
8.19%, respectively.
Quotes for the two bonds went down Tuesday so investors were able to buy the bonds at lower prices.
Quotes for short-term bonds dropped. OFZ-FD 27014 (maturing in December 2004) fell 8 basis points and OFZ-FD 27017
(maturing in August) lost 10 basis points. Yield was 6.24% and 5.8%, respectively.
Weighted average yield for OFZ-FD and OFZ-AD bonds fell 0.42% to 7.18%.
There were seven deals with GKO 21172 (maturing in August) totaling 59.71 million rubles.
The market will be stable on Thursday with slight price fluctuations, analysts predict. Trading will continue to be
light because of the ruble shortage. [RU ASIA EUROPE EEU EMRG GVD INSI] me
[Interfax] |
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