Sanctions, What Sanctions? Russia Bond Yields Plunge To 3 Year Lows

After three years of US sanctions on Russia, Putin’s cost of funding his nation’s economy has tumbled as Russian government five-year ruble notes climbed further this week, pushing the yield to the lowest on a closing basis since February 2014.
As Bloomberg reports, the securities are gaining as a strengthening ruble and lower-than-expected inflation prompt economists to project that the Bank of Russia will resume interest-rate cuts as soon as March, and not in the second quarter as Governor Elvira Nabiullina had previously signaled.
Along with being the best performing stock market in the world since Trump’s election, Russia’s bond market has soared (while China’s has tumbled).

This post was published at Zero Hedge on Jan 13, 2017.


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