The ruble was quoted below 60 per dollar and per euro on Wednesday, as Russia’s Ministry of Finance offered Treasury bonds for the first time since February, enjoying demand nearly 2.5 times that of relatively small volume available.
The dollar was stable at 59.8925 rubles. The euro was also close to zero at 59,925 rubles.
“The focus is on OFZ’s first placement in half a year,” said Georgy Vashchenko, deputy director of the research department at Freedom Finance Global, hoping that new loans will be used to refinance domestic debt, among other things.
In February, Russia suspended weekly auctions of OFZ Treasury bonds, which it uses to plug holes in the budget.
On Wednesday, the country offered ten-year bonds in volume of 10 billion rubles ($167.5 million), seeing a demand of 24.8 billion rubles.
Demand at the last OFZ auction on February 9 was about 80 billion rubles.
“Demand is likely to be high at the first auction as investors expect a rate cut on Friday,” Vashchenko said.
Source: CNN Brasil
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