17 June 2004 00:09
OFZ PRICES DOWN ON LOW TRADING TUESDAY
The average weighted price for these papers was down by 46 basis
points by the end of the day to 106.73% of face value, with yields of
MOSCOW. June 15 (Interfax) - Prices for government securities on the first working day of the week fell against a
backdrop of low trading, which amounted to 193.197 million rubles, of which OFZ 46002, maturing in 2012, accounted for
55%.
8.25% per year.
Dealers with Moscow banks said that the low trading was due to the fact that on Tuesday credit organizations made tax
payments, which resulted in a shortage of funds on the market.
The drop in price for government securities may have been caused by a negative price dynamic on the Russian forex
debt market, where Russian Eurobonds fell 1%. The Eurobond market has been concerned about an increase in interest rates
by the Federal Reserve for several months already and this is continuing to have a negative influence on the domestic
debt market.
The experts also said that yields on government securities are not interesting to most investors, as they do not
exceed 8.5% per year on the longest issues - OFZ 46014, maturing in 2018. Therefore investors prefer to invest in other
assets.
However, trading was relatively active (34.19 million rubles) in the OFZ-AD 46001 sector, maturing in 2008. Quotes
for these papers fell by 24 basis points to 109.71% of face value, with yields of 7.34% per year.
No operations were carried out with GKO on June 15.
On Wednesday the Finance Ministry plans to hold an auction to
Two deals were also carried out with OFZ-AD 46012, maturing in 2029. The price for these papers amounted to 44.55% of
face value and yields were at 8.65%.
Only one or two deals were carried out with other issues, which makes it difficult to judge the formation of a
trend.
Average yields on the OFZ-FD and OFZ-AD markets on Tuesday increased 0.98% to 7.21% per year.
additionally place 6 million rubles in OFZ-AD 45001, maturing in 2006. Experts forecast that demand at the auction
will not be very high. It is possible that investors will reinvest funds received from coupon payments on several OFZ
issues amounting to 2.8 billion rubles, but they will not invest more than this amount, analysts said.
[Interfax] |
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