Micex Little Changed as Bond Yields Fall: Russia Reality Check

Markets are reacting in real time to tension in Ukraine following Russia’s March incursion into Crimea and subsequent annexation of the Black Sea peninsula.

The Micex Index rose 0.1 percent to 1,409.06, bringing its drop since Feb. 28, the day before President Vladimir Putin’s incursion, to 2.5 percent. The yield on local-currency bonds due February 2027 fell five basis points to 9.3 percent, taking the increase since Feb. 28 to 94 basis points. The ruble rose 0.1 percent to 39.385 per dollar, paring its decline in the period to 8.9 percent.

The chart shows the performance of stocks, bonds and the ruble, along with indicators of Russian investment risk. The top panel displays the value of the Micex Index of 50 stocks, government debt in the Bloomberg Russia Local Sovereign Bond Index, and the ruble relative to the dollar.

Credit-default swap rates on Russian bonds due in five years appear in the bottom panel. The yield gap between Russian debt and U.S. Treasuries and the one-month implied volatility of the ruble are also tracked.

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