The Ministry of Finance will offer classic connectors OFZ PD-26241 and IN-52005 on Wednesday

MOSCOW, July 18 (Reuters) – Russia’s Finance Ministry will hold two unlimited auctions on Wednesday, July 19, where it will offer a fixed-coupon federal loan bond issue and an index-face issue.

OFZ PD-26241 with redemption on November 17, 2032 will be put up for the first auction in the amount of balances available for issue, that is, for 92.8 billion rubles at face value.

After that, the agency will offer OFZ IN-52005 with redemption on May 11, 2033 in the amount of balances available for placement in the specified issue, that is, 238.3 billion rubles.

The Ministry of Finance has set the following rules for tomorrow’s practices:

– 12.00 – 12.30 – submitting bids to the auction for the placement of the PD-26241 issue;

– 14.00 – introduction of the cut-off price for the PD-26241 issue;

– 14.30 – 15.00 – submitting bids to the auction for the placement of the issue of IN-52005;

– 16.30 – introduction of the limit price for the IN-52005 issue.

The amount of satisfying bids at auctions will be determined on the basis of the amount of demand, as well as the amount of the premium requested by the participants in relation to the profitability levels actually prevailing on the market.

Tomorrow’s auctions will be the last before Friday’s meeting of the Board of Directors of the Bank of Russia. Local markets are waiting for the regulator to return to tightening the monetary policy in the conditions of increased inflation risk and growing inflation expectations of the population, and some analysts allow an unusual step of raising the rate, up to 100 basis points. (Moscow office)