Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Ruble Extends Plunge as Investors Unwind Long Bond Positions

ForexApr 11, 2018 04:02AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Ruble Extends Plunge as Investors Unwind Long Bond Positions

(Bloomberg) -- Russia’s ruble extended it’s slump and bonds retreated as investors offloaded holdings amid a wave of uncertainty created by the latest round of U.S. sanctions.

The currency dropped 2.1 percent to 64.345 per dollar, extending a slide this week to almost 8 percent. The yield on 10-year local-currency debt jumped to 7.69 percent, the highest level since November.

The harshest U.S. penalties on Russia yet have left investors guessing about future targets, spurring them to unload long positions built up in recent months in ruble assets. Foreigners held about 34 percent of Russia’s local-currency sovereign bonds before the selloff, a record share, according to central bank data.

“The market was caught off guard, with many funds overweight Russian stocks, bonds and currencies,” said Morgan Harting, a portfolio manager at AllianceBernstein LP in New York. “It may be that keeping the rationale vague is part of the U.S. strategy -- leaving investors more uncertain about what comes next and more apprehensive about doing business in Russia.”

Read More: SocGen Doubles Down on Ruble-Rand Trade That Hit Target Early

Russia’s Finance Ministry canceled its weekly bond auction for the first time since the oil price crash in 2015. Auctions will resume when the market stabilizes, the ministry said in a statement late on Tuesday, adding that it doesn’t expect the increased volatility to last for long.

The iShares JP Morgan EM Local Government Bond ETF, which lists Russia as one of its biggest components, suffered its biggest outflow since October on Tuesday.

Ruble Extends Plunge as Investors Unwind Long Bond Positions
 

Related Articles

Dollar Higher, Yen Under Pressure as U.S. Yields Rise
Dollar Higher, Yen Under Pressure as U.S. Yields Rise By Investing.com - Sep 28, 2021 6

By Peter Nurse Investing.com - The dollar edged higher in early European trade Tuesday, boosted by rising U.S. Treasury yields as traders position for the Federal Reserve tapering...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email