Putin Diplomacy Calms Azerbaijan to Armenia Bondholders

Optimism that Azerbaijan and Armenia will avoid war is luring investors back to their bonds as Russian President Vladimir Putin seeks to quell violence between the nations that sparked a record selloff.

The yield on Azerbaijan’s dollar notes due March 2024 has slid 35 basis points in the past six days to 4.55 percent today by 1:36 p.m. in Baku after the the heads of the two former Soviet republics met for talks in Sochi last week. Concern the nations’ worst clashes in two decades could escalate drove the rate up 54 basis points in the previous three days to the highest in nine months, data compiled by Bloomberg show. Armenia’s six-year yield has slid 41 basis points since Aug. 5.