Russian Bonds Slump as ‘Nuclear Option’ of Debt Sanctions Raised
- Bond yields jump 11 basis points, while ruble buoyed by oil
- U.S. said to mull tougher penalties over Navalny poisoning
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Russia’s local bonds fell the most in three weeks on speculation the U.S. could target the nation’s sovereign debt with a tougher round of sanctions over the poisoning and jailing of opposition leader Alexey Navalny.
Ruble-denominated notes dropped for the first time this week after Bloomberg reported President Joe Biden would consider imposing sanctions on Russia’s bonds if it’s again found to commit a major transgression of the international ban on chemical weapons, according to people familiar with the matter.