Trading in government bonds on the Moscow Stock Exchange began on Monday after a long hiatus. There is no information yet about the opening of the share transaction.
Trading Russian government bonds have started volatile on the Moscow Stock Exchange after a break of about three weeks.
The Moscow Stock Exchange has been trading in stocks and bonds since the West imposed severe economic sanctions on Russia in response to the war in Ukraine.
According to the news agency Reuters, the market interest rate on a 10-year Russian government bond would hit a record high of 19.7 percent in pre-trade trading. Similarly, bond prices plunged a third.
In actual trading, the market interest rate on the 10-year bond settled at around 13.3 percent.
The central bank announced in connection with its interest rate meeting on Friday that it will start buying bonds on Monday, when trading will begin. The central bank made its purchase in actual trading.
Central Bank the purpose of the purchases is to increase liquidity in the banking system and finance the market. The central bank said on Friday it would sell the loans after the market stabilizes.
There are also restrictions on bond trading. For example, bonds may not be sold to non-residents in the next two weeks. Non-residents held almost a fifth of Russian government bonds in February.
Russia has gradually opened up its financial markets since imposing sanctions. Fears of an immediate collapse of the country’s financial system eased last week as the country was able to pay interest on its dollar-denominated bonds in dollars.
Now only trading in shares on the Moscow Stock Exchange is closed. The shares were last traded on February 25th. The Central Bank of Russia has not commented on when the shares would resume trading.
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