OFZ yields decline faster in June

High demand for OFZs amid international investors’ high risk appetite and a limited initial offering helped reduce OFZ yields, notes the latest issue of the Financial Market Risks Review. OFZ yields declined faster in June, helping curb non-residents’ carry trade operations and slow down growth in their share of OFZ investments compared with May 2019.

In June, the Bank of Russia published for discussion a draft document on the implementation of international obligations to transfer interest rate swap contracts to centralised clearing. Interest rate swap contracts should be transferred to centralised clearing on a step-by-step basis to maintain the market’s steady development. In view of the above, the Bank of Russia estimates that several major market participants may be transferred to centralised clearing as the requirements stipulated in the draft document are implemented. At the same time, the Bank of Russia is continuing dialogue with market participants to discuss the parameters of these requirements.