Ruble Bond Sale Fails on Lowest Yield to Market: Russia Credit
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Russia failed to sell any 2016 ruble bonds at an auction today and issued less than 1 percent of its three-year notes after offering the lowest yields relative to market rates since it began providing guidance to investors three months ago.
The Finance Ministry cancelled a sale of 6.42 billion rubles ($209 million) of so-called OFZs due 2016 after investors demanded higher yields than the government was prepared to give, according to a finance official who declined to be identified in line with ministry policy. The Ministry offered a yield of between 7.25 and 7.40 percent for the securities in guidance yesterday, at least 30 basis points below the yield of 7.7 percent at the close of trading Dec. 13, data compiled by Bloomberg show.