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USD Bond Yields Surge +786-2,611bp as Ukraine Invasion, Sanctions Hit Hard

  • Local & USD bonds remain Unch this morning, after yesterday’s invasion of Ukraine sparked extensive selling pressure on Russian assets across the board as investors fled due to Western sanctions.
  • USD bonds suffered the brunt of it with the CBR stepping in with liquidity to soften the blow on OFZs.
  • USD bond yields rose +786-2,611bp across the curve in an astronomical move higher: 2Y +2,661bp, 5Y +1,067bp, 7Y +1,025bp & 15Y +786bp.
  • OFZ yields also shifted +397-574bp higher with the 5Y most offered on the day. W/w the USD curve stands +603-2,746bp higher with a bear flattening bias holding.
  • Credit default swaps surged +485bp to 917, eclipsing the prior wartime highs by some margin.
  • USD/RUB 1m risk reversals have stalled at 16.00 after rising 3.84 points (+32.52%), with spot opening up lower this morning.

USD Curve w/w

Russia 5Y CDS

MNI London Bureau | +44 020-3983-7894 |
MNI London Bureau | +44 020-3983-7894 |

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