Sberbank - OFZ Auction Results - June 3, 2021. Auction for 10y OFZ Sees Stronger Demand Than for 4y OFZ

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Sberbank

Alisa Zakirova ...

Igor Rapokhin

OFZ Auction Results - June 3, 2021. Auction for 10y OFZ Sees Stronger Demand Than for 4y OFZ

Yesterday's OFZ auctions turned out in line with our expectations and led to further flattening of the yield curve. The 10y issue on offer saw stronger interest than the 4y paper, while overall the demand for the 10y remained about the same as the previous week. Nevertheless, both issues were placed without significant yield premiums to the secondary market. The Finance Ministry raised a nominal R53.4 bln, slightly more than the average weekly pace (R45-50 bln) needed to fulfill the 2021 borrowing plan. This pace is quite modest, in our view, which should guard against additional pressure on quotes in the coming months.> Bids for the 10y OFZ 26235 (March 2031) came to R82.6 bln, and the Finance Ministry placed the full R20 bln at a weighted average yield of 7.24%. The yield premium to the secondary market was just 2 bps.> Bids for the 4y OFZ 26234 (July 2025) totaled R51.5 bln, and R33.4 bln was placed versus the limit of R40.2 bln for the auction. The secondary premium at the weighted average yield was 2 bps, or 4 bps at the cut-off. Just R7 bln remains to be placed in the issue.

03/06/2021 3 EN

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Sberbank

Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.

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Analysts

Alisa Zakirova

Igor Rapokhin

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OFZ Auction Results - June 3, 2021. Auction for 10y OFZ Sees Stronger Demand Than for 4y OFZ

Russian Consumer - Unemployment and Income: The Outlook for 2022

Russian Banks - What We Know at This Stage

Commodities Daily - March 24, 2022

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