Russia Bonds Jump on Fed Delay as Rate Cuts Seen Back on Agenda
- Rosbank predicts bond yields will fall 100 basis points
- Forward-rate agreements show receding bets for rate increase
This article is for subscribers only.
Russian bonds had their best week in two months as the Federal Reserve’s decision to hold borrowing costs opened the way for the central bank to continue a cycle of interest-rate cuts to shore up the economy caught in its first recession since 2009.
Yields on government bonds due in five years fell nine basis points to 11.53 percent by 5:02 p.m. in Moscow, a 30 basis-point decline for the week, the most among 28 developing countries monitored by Bloomberg. The ruble weakened 0.8 percent to 65.97 per dollar as oil, Russia’s main export earner, slid for a second day in London. The currency is on course for a 3 percent weekly advance, also the biggest rally in emerging markets.