Russia Cancels A Bond Auction After Only A Single Bidder Showed Up

Lonely russia aloneREUTERS/Alexander DemianchukA man fishes on a bank in the waters of the Black Sea in Sochi, the host city for the Sochi 2014 Winter Olympics, April 25, 2013. Picture taken April 25, 2013.

Bloomberg’s Mark Sweetman reports Russia canceled a bond auction after only one bidder took part in the sale.
The government was offering $US379 million-worth of 10-year notes at 7.70%-7.75%.

It’s the second time in four months, and third in less than a year, that the country’s finance ministry had to declare an auction invalid — on May 29, a surge in yields forced the cancellation of a $US1.1 billion Ruble sale.

Yields climbed 13 bps yesterday to 7.79%, and are up about 100 bps since April:

The weakness seen in Russian bonds (as well as the Russian ruble) are consistent with the general weakness seen in all emerging markets lately.

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