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. Last Updated: 07/27/2016

T-Bill Yields Rise Behind Central Bank Efforts

Average annualized yields on three-month treasury bills rose 11.71 percent to 178.12 percent at an auction Wednesday, hiked by Central Bank efforts to soak up extra rubles on the market.


Commercial banks placed bids worth 5.718 trillion rubles ($1.3 billion) for the 5 trillion ruble issue, according to the Moscow Interbank Currency Exchange, where trading takes place. The Finance Ministry sold 4.969 trillion rubles worth of T-bills.


One dealer said T-bills are topping bankers' lists for investments lately because the foreign-exchange markets have been stable and the equity market has turned down. The Central Bank is also keen to take money out of the market, he said.


"The Central Bank accepted high yields in exchange for taking as much liquidity as it can from the market," he said. Dealers said yields kept in line with those on the secondary market.


"On the secondary market yields were around 172 to 177 percent yesterday for paper with the same maturity date," said another analyst. "The Finance Ministry and the Central Bank weren't able to push the T-bills lower than they are on the secondary market."