Bloomberg News

Ruble Falls to Dollar, Bond Yields Rise on China Growth Concern

May 03, 2012

The ruble weakened against the dollar and yields on Russia’s international debt rose after a report showed Chinese non-manufacturing industries grew at a slower pace in April, a sign of decelerating growth.

The ruble lost 0.2 percent to 29.46 per dollar as of 10:08 a.m. in Moscow, heading for the weakest closing level since April 23. Russia’s $3 billion of Eurobonds due 2042 fell for the first session in four, increasing the yield one basis point, or 0.01 percentage point, to 5.198 percent.

A purchasing managers’ index was at 56.1, according to the National Bureau of Statistics and China Federation of Logistics and Purchasing, compared with 58 in March. A level above 50 indicates an expansion.

The ruble was little changed at 38.7302 per euro and 33.6317 against the central bank’s target dollar-euro basket. Investors increased bets on the currency weakening, with non- deliverable forwards showing the ruble at 29.8661 per dollar in three months, compared with expectations of 29.817 per dollar yesterday.

Russia’s Eurobonds due 2015 rose, lowering the yield one basis point to 2.091 percent. Similar-maturity dollar- denominated notes from OAO Sberbank, Russia’s largest lender, were little changed with the yield at 3.377 percent.

To contact the reporter on this story: Jack Jordan in Moscow at jjordan22@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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