Armenian, Azeri Bonds Tumble as Death Toll Mounts From Clashes
- Biggest one-day jump in Armenian yields since mid-December
- Azeri bonds pare losses after both sides call for cease-fire
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Armenian and Azeri bonds dropped for a second day after clashes between the two ex-Soviet republics over the disputed Nagorno-Karabakh threatened to spill over into a politically sensitive region.
The yield on Armenia’s Eurobonds maturing in September 2020 climbed 16 basis points on Tuesday to 6.52 percent at 7 p.m. in the capital Yerevan, set for the worst day since mid-December. The rate on Azerbaijan’s March 2024 note initially also rose 15 basis points, paring the increase to nine basis points at 5.71 percent after both sides agreed on a cease-fire. Both securities traded at their lowest yield in at least four months just before the violence flared.