January 13, 2005 |
|The Russian Finance Ministry expects a slight increase in yields on the domestic market for government securities in 2005 in line with world trends, Finance Minister Alexei Kudrin said at a government meeting on Thursday. |
"Today we expect a slight increase in yields due to the fact that on the world market yields are increasing as a result of an increase in rates by the Federal Reserve," the minister said. He said that this increase in rates is increasing the spread between Russian bonds on the external market, which, in turn, is reflected on the domestic market.
Kudrin said that at the start of 2005 yields on GKO of up to a year amounted to 3%-4.5% per year, on mid-term papers of up to five years - 5.2%-7%, and on long-term papers - 7.3%-7.9% per year.