Loading ...Russian Bonds, Stocks, Ruble Tumble On Latest US Sanctions
Submitted by Tyler Durden on 07/17/2014 08:23 -0400
The Russian Ruble slumped 1.6% today, its biggest drop in over 4 months as investors kneejerk-reacted to the US latest round of restricted-funding-access sanctions. The Ruble is back at 2-month lows against the USD. The bonds of several of the sanctioned companies are also breaking down with Rosneft yields up 89bps at 6.22% and Novatek yields surging to 6.44% as even though Fitch confirms these firms can manage their own cash needs through 2015, as one analyst notes, “the lack of ability to raise long-term dollar funding will become a big economic limitation for all of them.” The broad Russian stock market is also tumbling, down to 2-month lows (though still notably above the US markets since sanctions began).
Sanctions 3.0 are having their normal short-term negative effect…
http://www.zerohedge.com/news/2014-07-17/russian-bonds-stocks-ruble-tumble-latest-us-sanctions