Russian bond yields and the cost of insuring the country against default rose on Wednesday, as investors fretted over intensifying sanctions, the prospect of a recession and falling oil prices.
Russia's benchmark 10-year domestic ruble bond rose 14 basis points to 10.9 percent during Wednesday. Meanwhile the cost of insuring Russia's five year debt against default—a measure of perceived risk in a country—hit a five-year high of 354.4 basis points, according to data provided by Thomson Reuters. This means that investors with $10 million of Russian debt would have to pay $354,400 a year to protect it.
Moscow is facing a double economic hit from falling oil prices and from sanctions imposed by the West for its incursion in Ukraine this year.