After three years of US sanctions on Russia, Putin’s cost of funding his nation’s economy has tumbled as Russian government five-year ruble notes climbed further this week, pushing the yield to the lowest on a closing basis since February 2014.
As Bloomberg reports, the securities are gaining as a strengthening ruble and lower-than-expected inflation prompt economists to project that the Bank of Russia will resume interest-rate cuts as soon as March, and not in the second quarter as Governor Elvira Nabiullina had previously signaled.