Auction on placement of Federal loan bonds will not take place for the third time in a month. The Finance Ministry explained the decision of “unfavourable market conditions”
Photo: Ramil Sitdikov / RIA Novosti
The Finance Ministry again cancelled the auction on placement on the market of Federal loan bonds, scheduled for September 12. Office in the announcement explained this decision by the adverse market conditions.
“The Ministry of Finance of Russia informs about the failure to 12 September 2018 auctions on placement of OFZ due to unfavorable market conditions,” — said in a statement on the website of the Ministry of Finance.
The auction OFZ breaks down for the third time in a month. The Ministry of Finance refused from placement of government bonds on 22 August in connection with the high volatility in the financial markets. “After the stabilization of the situation in the debt market, the Finance Ministry will renew the auctions on placement of OFZ on a regular basis”, — stated in the message Department.
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After a week’s break on 29 August, the Ministry of Finance placed 13,22 billion rubles Federal loan bonds with terms of 15 billion rubles — that is almost 90% of the plan. However, the auction of 5 September, the Ministry of Finance was forced to acknowledge cancelled, again citing the “dramatically increased volatility in the financial market”.
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The head of the Ministry Maxim Oreshkin on 6 September explained the situation on the market of OFZ changes in the structure of demand for Russian government bonds. “It is very important to understand that over the last six to twelve months we have the government bond market has changed dramatically from the point of view of the structure of demand. A year ago, foreign investors had bought a significant amount of norms of allocations, now all the new accommodation plus the reduction of positions, which is foreign investors actively purchase Russian banks”, — explained the Minister.