Putin Lures $1 Billion Less as Higher Yields Sought

Russia raised 34 billion rubles ($1.1 billion) less than offered at two bond auctions yesterday as investors demanded higher yields than the government was willing to pay.

Prime Minister Vladimir Putin’s administration failed to sell 30 billion rubles of 6.88 percent bonds due in July 2015, said Alexander Shcherbakov, deputy head of the Finance Ministry’s debt department. The government issued 11 billion rubles of notes due January 2013, less than the 15 billion rubles planned, at a yield of 6.28 percent, four basis points, or 0.04 percentage point, higher than rates on existing debt, according to data compiled by Bloomberg.