Mongolia’s Bonds Slump With Copper as Rio Spat Stalls Mine
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Mongolia’s dollar bonds and currency sank to record lows this month as a slide in commodity prices and a dispute with Rio Tinto Group over developing one of the world’s largest copper and gold mines kept foreign investors away.
The yield on sovereign notes due January 2018 surged 190 basis points, or 1.90 percentage points, from Dec. 31 to an unprecedented 9.79 percent on Jan. 21 and was at 8.78 percent as of 9:54 a.m. in Hong Kong Tuesday, data compiled by Bloomberg show. The tugrik has weakened 2.8 percent to 1,942 a dollar in January and reached an all-time low of 1,944 on Jan. 22.