Features of the Government Bond Market in the Russian Federation and the Analysis of its Effectiveness

<p>This work is devoted to the government bond market of the Russian Federation. This topic is relevant nowadays, because the Russian government is currently providing an active fiscal policy, with the aim to develop this market and improve its liquidity.</p><p>The subject of this study is a set of relations that arise in the process of issuance and circulation of government bonds. Object of the research are the government bonds. Theoretical basis of this work are the ​​works of Russian and foreign economists and specialists in the operation of the government securities market. Market data of the bonds market for analysis was taken from the reports of the Ministry of Finance of the Russian Federation and the various statistical databases.</p><p>The main aim of this paper is to present the level of development reached by Russian government bond market.</p><p>In accordance with the pointed out aim, the following tasks were given: to study the history and to understand how the market was formed; to highlight specific features of the Russian market; to provide an analysis of the current market conditions; to evaluate the effectiveness of the government bond market today.</p><p>The analysis of the Russian Federation government bond market showed that the implemented Ministry of Finance policy, reached significant results. Market volume for the last 5 years has increased by three times to 4.4 trillion. roubles. The turnover of OFZ secondary market, also has a good positive dynamics, and in 2013 it reached the level of turnover on corporate bond market. Turnover ratio of the government bonds, as the main indicator of liquidity, also had a positive trend, which tells us about the success of the government policy. However, political crisis in Ukraine in 2014, slowed down the development of this market. And to truly measure the efficiency of the market today is not possible, because the market is very unstable, and is very prone to the negative expectations of foreign investors.</p>