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Russian Bond Yields Soar as Market Reopens After Ukraine Invasion

  • Yields climb across curve in first trading since rate hike
  • Local stocks remain shut, ruble edges stronger versus dollar
Updated on

Russia’s local bonds slumped as trading resumed for the first time in three weeks after the central bank pledged to buy government debt to boost liquidity and help stabilize the financial system.

The nation’s markets are gradually reopening after President Vladimir Putin’s invasion of Ukraine triggered sanctions and capital controls that severed ties with the global financial system and fueled concern about a wave of defaults. Fears of an imminent crisis eased after $117 million of interest payments on Russia’s foreign bonds started reaching international investors at the end of last week. Now, only equity trading remains shut.