Russia on Wednesday scrapped a bond auction for the first time since May as investors pulled in their horns following the recent weakening in oil prices and bad economic data from Germany and the eurozone.
Some fund managers may also have decided that this year’s rush into emerging market bonds, which has compressed yield spreads around the globe, may have gone a bit too far – although it’s early to make that call.
Russia’s finance ministry said in a statement that the sale had been dropped after investors demanded higher yields than the government offered. Officials had planned to auction Rbs30bn ($956m) of 2019 rouble paper at a yield of 7.12 per cent to 7.17 per cent.
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