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Russia’s Bond Yield Higher Than Rwanda’s

It’s expensive to be poor: Russia’s 10 year bond yield, the key marker of international borrowing costs, rose above Rwanda’s. It’s up 14 basis points to a 6.75% yield, while it was at 4.6% last year, according to the FT:


[Chart courtesy of the Financial Times]

In other words: an energy exporting state with no debt has a debt cost higher than does Rwanda. Sanctions, plummeting oil prices, a successful campaign to render Russia an international pariah, or whatever, something is going right.

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  • Jacksonian_Libertarian

    This is all about the risk premium on Russian debt, with falling oil prices likely to cripple the Russian budget for many years, the risk of default went way up. Also, Russian belligerence and war mongering leads lenders in the west to believe that their loans will get repudiated if their nation goes to war with Russia.

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