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Russia’s Bond Market Return Aborted as Yields Surpass 9%

Russia tested appetite for ruble bonds for the second time in eight weeks yesterday, only to scrap the auction after seeing how much it would pay to borrow as the crisis over neighboring Ukraine escalates.

The Finance Ministry said in a statement that investor bids for the 20 billion rubles ($560 million) in five-year and nine-year OFZ notes on offer didn’t “adequately represent” Russia’s “credit quality.” Government bonds fell for a fourth day, with the yield on 2027 notes rising five basis points to 9.22 percent. The ruble was little changed and the Micex index fell.