Russia held its first ruble bond auctions since President Vladimir Putin annexed Ukraine’s Crimea region, seizing on a lull in tensions even as yields remain within one percentage point of a record high.
Markets from Hungary to Poland and Russia are suffering contagion from the violence rocking Ukraine’s capital, sending bond yields higher and currencies lower as the turbulence afflicting developing nations deepens.
Ukrainian bonds rebounded from a record low and equities erased declines as European Union sanctions added to pressure on President Viktor Yanukovych to find an end to violence that has killed at least 64 people.
Russia will struggle to lure foreign investors to ruble corporate debt as the market prepares to open about a year after government bonds were offered to outside funds, according to ZAO Raiffeisenbank and OAO Gazprombank.
Codelco, Chile’s state-owned copper producer, is poised to narrow BHP Billiton Ltd.’s lead in the bond market even as it prepares the biggest investment plan since dictator Augusto Pinochet created the company in 1976.
Poland’s central bank Governor Marek Belka is keeping mum about the future path of interest rates, seeking to prevent traders from prematurely betting on higher borrowing costs and squeezing the nascent economic recovery.