The expert named the reasons for the growth of the Russian government bond index

The Government Bond Index (RGBI, Russian Government Bonds Index) demonstrates an increase in the value of the package of federal loan bonds (OFZ) included in it, due to a combination of geopolitical stability, reduced inflationary risks and successful government auctions. Dmitry Tsarkov, director of the Trading Operations Department and co-founder of GBIG Holding, told Izvestia on March 20.

According to the Moscow Exchange, on the morning of March 20, 2025, the Russian government bond index rose above 113 points for the first time since May 2024.

"The world arena, which for a long time resembled a bubbling cauldron, has finally begun to cool down. The reduction of international tensions is like a balm for investors. They are actively returning to the Russian government bond market, seeing reliability in them," the expert noted.

According to him, the improvement of the geopolitical background reduces risks and gives confidence that investments in OFZs will become a strong anchor in the investment portfolio. In addition, the dynamics of inflation has become an important factor.

"According to Rosstat, the consumer price index for the week from March 11 to March 17 increased by only 0.06%, which is lower than in previous periods. The population also began to look to the future with great optimism: inflation expectations decreased in March," the expert emphasized.

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He added that these signals give reason to believe that the Bank of Russia may ease its monetary policy by lowering the key rate in the near future.

"Holding the rate to achieve a positive effect is already giving the green light to purchase OFZS. And, of course, it should be understood that bank deposits will very soon begin to lose their attractiveness," the expert said.

He paid special attention to successful auctions for the placement of federal loan bonds.

"The recent auctions have been a real triumph. The high demand for government securities indicates that investors are willing to trust and invest in the Russian economy. Successful placements not only filled the state treasury, but also served as a catalyst for rising bond prices, which in turn led to an increase in the RGBI index," Tsarkov concluded.

Last year, on December 5, Ruslan Spinka, director of Sales and customer service at Fontvielle investment company, told Izvestia that government bonds are a conservative instrument with well—predicted returns. A savings deposit has similar qualities. At the same time, savings deposits may have more favorable terms, but the deposit allows you to fix a high yield for a short period of time, a maximum of several years. In the future, everything depends on the key rate.

At the same time, classic bonds have a constant yield: the conditions applicable to them may remain relevant for several years.