Russia Suspends Bond Sales After Banks Demand 13% to 17% Yields
Updated
Updated · POLITICO Europe · Jul 22
Russia Suspends Bond Sales After Banks Demand 13% to 17% Yields
2 articles · Updated · POLITICO Europe · Jul 22
Summary
Russia’s Finance Ministry halted government bond sales after a run of failed auctions left it unable to borrow at rates local banks were willing to accept.
Yields on Russian government bonds are now running between 13% and 17%, underscoring how sharply financing costs have risen as Moscow funds a fifth year of war.
The standoff pits the ministry, which needs cash to cover war spending, against the country’s biggest banks, which are pressing for ever-higher returns.
A central bank meeting on Friday could ease the pressure slightly if policymakers cut the key rate, potentially lowering bond yields as soon as next week.