Putin’s Ukraine Gambit Turns Debt Sanctions Into a Real Threat

  • Russian bond yields trade near highest in more than a year
  • OFZ sanctions now ‘significantly more likely’: GAM’s McNamara
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A massive troop buildup on the border with Ukraine has turned the once unthinkable idea of U.S. sanctions on Russian sovereign debt into a real possibility for investors.

Yields on ruble bonds, known as OFZs, jumped to the highest level in more than a year last week and were edging higher again on Tuesday as the market watched deepening tensions between Moscow and Washington take another turn for the worse.