Ruble Sinks to Record as Auction Scrapped: Russia Reality Check

Markets are reacting in real time to
tension in Ukraine following Russia’s March incursion into
Crimea, unrest in the country’s east, where pro-Russian
separatists seek autonomy from Kyiv, and declining oil prices.

The ruble fell to a record for a fourth day, trading 5.2
percent weaker at 54 per dollar at 7:43 p.m. in Moscow,
stretching its decline since Feb. 28, the day before President
Vladimir Putin’s incursion, to 34 percent. The Micex Index rose
0.3 percent to 1,583.12, giving an advance in the period of 9.6
percent. The yield on local-currency bonds due February 2027
rose 12 basis points to 10.76 percent, bringing its increase
since Feb. 28 to 240 basis points.

The chart shows the performance of stocks, bonds and the
ruble, along with indicators of Russian investment risk. The top
panel displays the value of the Micex Index of 50 stocks,
government debt in the Bloomberg Russia Local Sovereign Bond
Index, and the ruble relative to the dollar.

Credit-default swap rates on Russian bonds due in five
years appear in the bottom panel. The yield gap between the
nation’s debt and U.S. Treasuries and the one-month implied
volatility of the ruble are also tracked.

To contact the reporter on this story:
Chris Kirkham in London at
ckirkham@bloomberg.net

To contact the editors responsible for this story:
Wojciech Moskwa at
wmoskwa@bloomberg.net
Chris Kirkham

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