17 June 2004 06:06
OFZ prices climb in thin trading
MOSCOW. June 17 (Interfax) - Prices for most OFZ bonds climbed on Thursday in thin trading with volume of just
166.135 million rubles.
Despite some rise in banking system liquidity, the market remains quiet and dealers attribute this to high interest
rates on the monetary- financing market. Also, investors are reluctant to invest funds in bonds because they face tax
payments at the end of the month.
Low and unappealing yield rates is another factor to put off demand.
OFZ-FD 27025 (maturing in 2007) saw the highest volume of 64.8 million rubles. Prices went up 53 basis points to
102.03% and yield was 6.6%.
Dealers say the second straight day of gains may be put down to the fact that players want to reinvest the coupon
payments received Tuesday.
Prices edged up and down for short-term bonds, where two issues accounted for about 40% of overall volume. OFZ-FD
27014 (maturing in December 2004) climbed 12 basis points and OFZ-FD 27017 (maturing in August) lost one basis point.
Yields were 5.96% and 5.73%, respectively.
There were no GKO deals.
Analysts do not expect any serious changes on Friday's market.
Demand for short-term issues remains low. Thursday's OFZ 46009 reverse modified repo auction was acknowledged as
invalid due to a lack of bids. The Central Bank planned to repurchase the bonds on November 18 2004. The bonds mature on
June 2 2027.
Trading volume with amortization bonds, usually the most liquid on the market, did not exceed 34.2 million
rubles.
Weighted average yield for OFZ-FD and OFZ-AD bonds went down 0.7% to 7.13%.
Trading will remain thin and fluctuations slight. [RU ASIA EUROPE EEU EMRG GVD INSI] me
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