Central Bank Seeks to Reduce Bond Vulnerability | Business | The Moscow Times:
"The Central Bank is seeking market makers for the domestic treasury bond market because a rising share of foreign investors makes the assets more vulnerable to global risk aversion, a deputy minister said.
The financial regulator warned in July that it saw risks from foreign investors' growing role in the domestic treasury bond market and may "react" if their share rises above 40 percent.
Foreign participation in the market has risen rapidly since February, when Russia allowed the international settlement system Euroclear to settle the bonds, known as OFZs. Foreigners' share is now close to 30 percent.
While external surpluses and low debts have helped shield Russia from the intense market pressures generated by signals the U.S. Federal Reserve could soon begin to run down its supply of cheap money, the yield on Russia's 10-year treasury bond, now 7.7 percent, is just below a one-year high."
'via Blog this'
No comments:
Post a Comment