The share of non-residents in OFZ fell below 20%

The share of non-residents in the OFZ market for the week from December 6 to December 12 decreased by 0.3 percentage points, to 19.5%, according to a review by VTB Capital analysts received by RBC.

After several months of growth, the indicator again fell to a six-year low, reached in May this year and lasted until July. According to the Central Bank, as of the end of October 2021, the share of non-residents in the OFZ market was 21.2%, and the volume of their investments was estimated at 3.3 trillion rubles.

According to VTB Capital, the net outflow of foreign investments for the second week of December amounted to 31.3 billion rubles. “Sales by non-residents took place along the entire length of the curve [schedule of bond issues depending on maturity], only in 10-year OFZ-26239 a significant net inflow was recorded during the week. The most significant outflow was shown by the three-year OFZ-26223, the seven-year OFZ-26212 and the nine-year OFZ-26228, the investments of non-residents in which decreased by 10.9 billion, 6 billion and 3.5 billion rubles. respectively,” the analysts wrote.

In November, the outflow of foreigners from OFZs amounted to 106 billion rubles. — twice as much as a month earlier, wrote the Bank of RUSSIA in its Banking Sector Liquidity Review (.pdf). “The main sales took place from 16 to 30 November and amounted to 89 billion rubles. The days with the highest sales volumes are November 23 and 26, when Jerome Powell was announced to HEAD the Fed and the emergence of a new strain of covid-19 that caused a global risk aversion,” the Central Bank noted.