Russian government bonds headed for a second weekly decline as investors and traders increased bets that monetary policy will remain tight until the fourth quarter.
Ruble-denominated bonds due February 2027 fell for the first time in three days, sending the yield up one basis point to 8.62 percent at 3:32 p.m. in Moscow, six basis points higher in the week. The ruble strengthened 0.1 percent to 34.3710 per dollar, little changed since June 13.
Russia raised its benchmark one-week auction rate to 7 percent from 5.5 percent in February and to 7.5 percent in April to stabilize the ruble amid international condemnation of President Vladimir Putin’s actions in Ukraine. The central bank’s view on monetary policy carries a “clear hawkish bias, with no mention of potential rate cuts,” Vladimir Pantyushin, a strategist at Sberbank CIB in Moscow, said in an e-mailed note after meeting First Deputy Chairman Ksenia Yudaeva.
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