Government bond borrowings in the context of external shocks
Abstract. The development of such an important segment of the financial market, as a consequence of bond borrowings, ensuring the process of balancing state monetary funds, the operation of the refinancing system of the Central Bank of the Russian Federation, the investment attractiveness of lower industries and the economy as a whole, is one of the key tasks facing the economy. Therefore, studying the consequences of ongoing shocks on the value volumes of the government bond market is a pressing issue that requires close attention in the contemporary turbulent economic conditions. The article reveals the economic nature of external shocks, and also uses event analysis to measure their impact on the government borrowing market. Particular attention is paid to the issue of shock events superimposing on each other, which, depending on the direction of their impact, can lead either to a sharp drop in the volume of the government bond market, or, conversely, to its balanced dynamics.
Keywords: consequences of domestic borrowing, consequences of bonds, external shocks, sanctions pressure, energy prices, profitability, inverse curve
Highlights:
♦ external shocks are circular, there is a close relationship between shocks;
♦ external shock events lead to a structural restructuring of the economy exposed to its impact; the shock affects both the financial and real production spheres of the economic system, including the government borrowing market;
♦ an external shock has a significant impact on debt volume, yield, inversion, yield curve, and slowdown structure.
Vera A. Manyaeva, Olga Yu. Kuzmina - Samara State University of Economics, Samara, Russia