Auction on placement of Federal loan bonds, which the Finance Ministry planned to carry out Wednesday, September 5, did not take place because of requirements by the market of large awards, i.e. the Agency is not satisfied with the prices in the bids of the investors, said the Director of the Department of state debt and state financial assets of the Ministry of Finance Konstantin vyshkovsky at the Moscow financial forum. The Ministry was going to offer investors in government bonds with fixed coupon yield on 15 billion roubles.
“Since the publication of the decision on the location of the Wednesday and until the time of the auction, unfortunately, there are new circumstances that had a negative impact on market participants. The yield of the morning on Wednesday has increased significantly. The prices that were listed in the filings, assumed the additional premium yield, and, of course, of this situation, we decided to recognize the auction invalid,” explained the vyshkovsky.
He noted that the bond market is under pressure because of a possible ban on the purchase of OFZ bonds to American investors, but the Finance Ministry nevertheless sees no reason to panic. “Despite the fact that the share of nonresidents in the Russian market is considerable, even under the stress scenario, we have no reason to believe that the Russian market of debt will stop, will cease to exist and we will not be able to carry out a program of borrowing,” said vyshkovsky.