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Hungarian analysts are split on MNB’s future course as rate hold looks imminent
42 minutes ago
In the latest example of capital being weaponised in the standoff between Russia and Nato, the proportion of OFZs (bonds issued by the Russian government) held by non-Russians has fallen below 18.7% – the lowest in over six years.
In response to news that America could ban holdings of OFZs altogether if new sanctions were introduced, foreign investors sold almost $389mn worth of the security in the space of two days, RBC reports.
This bought foreign holdings of the bond down to 18.8% as of 28 January, the lowest figure since July 2015.
The sell-off has showed no signs of slowing up, with unloading continuing into a second week as of Monday.
Sanctions introduced by the US in the summer of 2021 made participation in the primary government debt market illegal for foreigners, and created a similar flight from OFZs. But this did not prevent non-Russians from buying the bond on the secondary market, and the price of the security rallied shortly after.
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