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Russian Bonds Gain as Traders Laugh Off U.S. Sanctions Threat

  • SocGen recommends buying ruble debt, citing diminished risk
  • No word on bond report that has hung over Russian markets
Updated on

Russia’s borrowing costs plunged to the lowest level in more than four years as investors took the lack of detail in a U.S. Treasury report as a sign that Washington isn’t ready for tougher sanctions.

The long-awaited report published late Monday essentially amounted to a list of Russia’s billionaires and officials with no indication of additional penalties. The Treasury gave no details about a separate review of the possible impact of sanctions on Russian sovereign bonds that has been casting a shadow on Russian debt markets since it was commissioned by President Donald Trump in August.