1. Financial markets in Russia

5. At the same time, the yield of RUS-15, which belong to the category of the ‘shortest’ securities tradable on that market, displayed a drop by 4.6% (Fig. 1). On 31 October, the coupon income paid on RUS-15 and RUS-20 totaled $ 123.75m. Over the period from 27 October to 22 November 2011, the combined turnover of the secondary market of OFZ bonds amounted to Rb 60.12bn, while the average daily turnover amounted to about Rb 3.34bn, which corresponds to the 4.3% drop of the average daily turnover over than month by comparison with the previous period. Between 27 October and 22 November, 3 primary placement auctions of OFZ bonds were held in Russia (vs. 2 auctions one month earlier) (Table 1). Although the weighted average yield was high, the actual placement volume amounted to only 51.3% of the planned figure. No additional auctions for additional placement of OFZ on the secondary market were held over that period.

8. Among the domestic factors in the dynamics of the Russian stock market, we should note information on the increase in capital outflow from the Russian Federation as seen by the results of the year 2011; and on the drop in the volume of Russia’s international reserves; as well as the growth of the unemployment level in Russia in October to 6.4% (vs. 6% in September). At the same time, in November the market was propped up by the Bank of Russia’s decision to keep its rate of refinancing unchanged; the release of their positive financial results in Q3 2011 by some biggest Russian companies (OJSC Gazprom neft’, RUSAL); as well as Russia’s GDP growth over Q3 2011 by 4.8% per annum.