Banks placed some 1.613 trillion rubles ($492 million) in bids for the 1.4 trillion ruble issue, according to reports by the Moscow Interbank Currency Exchange, where the trade takes place.
Annualized yields on the bills averaged 244.72 percent, about the same as at the 24th auction in November and significantly higher than the Central Bank's annual refinancing rate of 180 percent.
"If the government lowers its refinancing rate, which it is bound to do, and deals with the T-bills program as seriously as it does now, the T-bills thing will work out," said Alexei Dolgikh, a securities expert with the Troika Dialog brokerage firm, referring to the government's plans to issue around 40 trillion rubles in securities within the forthcoming year to help cover its budget deficit.
The T-bill program suffered a serious setback due to the ruble's dramatic plunge against the dollar in October, but analysts said that money is now flowing freely back into the stabilized ruble markets.
Sergei Krikun, chief economist with securities department at Tveruniversalbank, said that low interest rates on loans have made T-bills seem more attractive.
Annualized rates on 90-day interbank loans now hover around 170 percent.
"Money is growing cheaper, so banks have to turn to state treasury bills," he said.
However, Krikun said that banks are mainly interested in three-month bills, and that the government's attempts to sell more six-month bills and one-year bonds might still undermine the whole program.
"Interest in half-year bills is slight and interest in one-year bonds is next to nothing," Krikun said.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.