Russia Scraps Ruble Bond Sale in 2nd Cancellation This Month

Russia scrapped a sale of 15-year ruble bonds, the second time it has canceled an auction this month, citing a lack of bids within the offered yield range.

The Finance Ministry planned to sell 10 billion rubles ($311 million) of the January 2028 notes with guidance of 7.70 percent to 7.75 percent, according to statements this week. The yield on the bond climbed two basis points to 7.84 percent before the results were announced, extending a 13 basis point increase yesterday. The ministry sold all 10 billion rubles of a new three-year note in a separate auction at an average yield of 6.43 percent.

The Finance Ministry canceled a June 5 auction ahead of schedule and sold only 900 million rubles out of 20 billion rubles offered on May 29. It shelved a sale on May 22 due to a lack of competitive bids. U.S. Federal Reserve Chairman Ben S. Bernanke holds a press conference today, where he may shed more light on when the Fed plans to trim its bond buying program which has fuelled a rally in emerging-market debt.

To contact the reporter on this story: Alex Nicholson in Moscow at anicholson6@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

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