Russian Bonds Fall After Policy Makers Pour Cold Water on Easing
- Ruble pares loss after S&P raises rating outlook to stable
- Bank of Russia says its rate forecasts at odds with traders
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Russian bonds headed for their biggest weekly decline in two months after the Bank of Russia said its 50 basis-point rate cut on Friday is the last of the year because any more risks rekindling inflation.
The yield on Russia’s February 2027 bonds climbed 10 basis points to 8.22 percent after policy makers dashed hopes that today’s interest-rate reduction would be the first of a series this year, extending their weekly gain to 13 basis points, the most since the period ending July 22. The ruble fell 0.3 percent against the dollar to 64.98 by 7 p.m. in Moscow, paring a loss of as much as 0.7 percent after S&P Global Ratings lifted the outlook on Russia’s junk credit rating to stable from negative.