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Russian 10 bond yields now 15% - link
| Irradiated library | 05/16/24 |
| Appetizing Fanboi Lodge | 05/16/24 |
| Irradiated library | 05/16/24 |
| vivacious bawdyhouse clown | 05/16/24 |
| flickering mood organic girlfriend | 05/16/24 |
| Irradiated library | 05/16/24 |
| silver chapel giraffe | 05/16/24 |
| well-lubricated principal's office | 05/16/24 |
| Fighting love of her life range | 05/16/24 |
Poast new message in this thread
Date: May 16th, 2024 8:24 AM Author: Irradiated library I don't think the steadily rising Russian bond yields are getting as much attention as they deserve. The yield on their 10 year bond was around 12.2% in late January and is over 15% now. Their central bank is warning it will likely stay high and may go higher:
https://tradingeconomics.com/russia/government-bond-yield
By comparison, the US 10-year bond yield, for all our fiscal problems, is only at 4.35%, which means it's vastly more expensive for Russia to borrow to finance its military spending than it is for the US.
What could explain this rise in Russian bond yields? Aside from inflation in Russia, which is bad enough for a government that might want to print rubles to finance the war, the rise in yields could suggest that the Russians have been financing the war with their remaining currency reserves but that those are being exhausted and they are now having to rely on more borrowing. What happens when a government needs to borrow more than the market is willing to loan them? They have to pay higher yields.
The fact that Putin just appointed economist Andrei Belousov as defense minister may suggest that he regards paying for the war as the primary challenge Russia faces now. There's been talk that the Russian economy might eventually start cracking under the strains of the war, and these may be signs that this is occurring.
It's obvious that Ukraine is facing a lot of struggles with manpower and energy infrastructure issues, but it seems Russia is facing its issues as well. I'm not sure if this will lead to pressure for a cease fire, but it seems possible it will. |
Date: May 16th, 2024 9:09 AM Author: Appetizing Fanboi Lodge insane levels of cope itt (http://www.autoadmit.com/thread.php?thread_id=5529091&forum_id=2#47666300) |
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Date: May 16th, 2024 10:49 AM Author: Irradiated library You're right- a central bank rate of 16% and 10 year bond yields at 15% are totally a sign of a healthy and competitive economy in a world where even the spendthrift US is paying less than 5% to borrow money. My bad. (http://www.autoadmit.com/thread.php?thread_id=5529091&forum_id=2#47666495) |
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Date: May 16th, 2024 10:57 AM Author: vivacious bawdyhouse clown Insane cope. Russia can wage wars with domestic production and doesn't need to "finance" anything (http://www.autoadmit.com/thread.php?thread_id=5529091&forum_id=2#47666521) |
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Date: May 16th, 2024 11:06 AM Author: flickering mood organic girlfriend .... so it shouldn't need bonds at all. certainly not at rates comparable with 1991 rates.
everything is good in rus, thanks pumo. |
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Date: May 16th, 2024 11:13 AM Author: Irradiated library Then explain this, moron:
https://twitter.com/robin_j_brooks/status/1791114344480018903
Not only is Russia having to pay precious cash to buy huge amounts of Western goods, they are having to pay a smuggler's premium since you know the Georgians, etc are getting a nice cut which drives up the price. |
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Date: May 16th, 2024 11:13 AM Author: silver chapel giraffe Cr! They can simply snap their fingers and the parts and labor will magically appear. Russians are magic, don’t you know! (http://www.autoadmit.com/thread.php?thread_id=5529091&forum_id=2#47666589) |
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Date: May 16th, 2024 11:14 AM Author: well-lubricated principal's office as should ours be (http://www.autoadmit.com/thread.php?thread_id=5529091&forum_id=2#47666590) |
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Date: May 16th, 2024 11:14 AM Author: Fighting love of her life range TT should put all his money in russian bonds and live large (http://www.autoadmit.com/thread.php?thread_id=5529091&forum_id=2#47666591) |