Debt Plan in Ruins as Rate Bets Derail Sale Again: Russia Credit
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Russia’s return to the debt markets ended after three bond sales amid investor bets that interest rates will need to rise as the ruble and oil prices sink.
The government scrapped this week’s auction of bonds, known as OFZs, after yields on the nation’s 10-year securities jumped to a five-year high and the ruble extended the world’s steepest drop since June. Wagers the central bank will raise borrowing costs have climbed to the highest level since the 2008 global financial crisis as the currency fell to record lows against the dollar-euro basket on all but one day this month.