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// definition

OFZ

Russian federal government bonds

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Macro & central banks

Short definition

Debt securities issued by the Russian federal government. They provide funding in exchange for future payments governed by each issue’s terms. Fixed and floating coupons allocate interest-rate risk differently. A repo can provide liquidity to the holder of an eligible security, subject to conditions and a valuation haircut.

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Intuition

The Treasury receives rubles at issuance; the bond’s terms determine subsequent payments.

Why it matters now

Domestic financing links Russia’s budget choices to bank portfolios and changes in interest rates.

Related analyses

Primary sources