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Russian Bonds, Stocks, Ruble Tumble On Latest US Sanctions

Tyler Durden's picture




 

The Russian Ruble slumped 1.6% today, its biggest drop in over 4 months as investors kneejerk-reacted to the US latest round of restricted-funding-access sanctions. The Ruble is back at 2-month lows against the USD. The bonds of several of the sanctioned companies are also breaking down with Rosneft yields up 89bps at 6.22% and Novatek yields surging to 6.44% as even though Fitch confirms these firms can manage their own cash needs through 2015, as one analyst notes, "the lack of ability to raise long-term dollar funding will become a big economic limitation for all of them." The broad Russian stock market is also tumbling, down to 2-month lows (though still notably above the US markets since sanctions began).

 

Sanctions 3.0 are having their normal short-term negative effect...

 

as The Ruble is also being sold notably...

 

We wonder how long before BRICS Bank steps in to provide 'temporary' funding... and just how quickly Putin's "boomerang" will hit if this selling continues.

 

Charts:Bloomberg

 

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Thu, 07/17/2014 - 08:24 | 4966676 gold_pa3ot
gold_pa3ot's picture

Fuck Russia, fuck Putin!

ZH, show the Ruskie stock market YTD please, will all have fun!

Thu, 07/17/2014 - 08:40 | 4966733 Glasnost
Glasnost's picture

Simple question, why?

Because you were infused with propaganda by the American state from a young age and that communists want to enslave the world? 

Thu, 07/17/2014 - 08:45 | 4966747 BaBaBouy
BaBaBouy's picture

Big Oilbama Wants WOAR...

Thu, 07/17/2014 - 08:49 | 4966777 power steering
power steering's picture

Both Putin and Obama were members of the Village People. "WHY EM SEE AYE, Its fun to stay..." I think Obama was the Indian guy and Putin had his shirt off.

Thu, 07/17/2014 - 09:29 | 4966957 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

I'm sure they acquire Russian assets just to sink them after jawboning "the new round of sanctions" on state-controlled media. Fairly SOP.

Thu, 07/17/2014 - 09:32 | 4966984 SWRichmond
SWRichmond's picture

Like the value of fiat currency, these sanctions only matter if people believe they matter.  American hegemony no longer rests on actual strength, but instead merely on the appearance of strength, IOW bluster.  King's new clothes.

Thu, 07/17/2014 - 08:44 | 4966757 Otrader
Otrader's picture

Enough russia talk.  Can we talk about our enslavement???

Thu, 07/17/2014 - 08:42 | 4966744 Otrader
Otrader's picture

down -6%.  Not bad considering all the sanctions/war going on.  If they figure out a way around fed/imf/world bank fiasco, they'll do ok.

Thu, 07/17/2014 - 08:26 | 4966679 highly debtful
highly debtful's picture

The way things are going these days, gold will soon be exclusively made of unobtanium.

Thu, 07/17/2014 - 09:25 | 4966954 Republi-Ken
Republi-Ken's picture

But Tyler, you told us that Putin always wins.

Tyler you told us Obama had no power and was weak to bare chested Putin.

Tyler how is this possible?

And why do all the Zero Hedgers love Putin, that bare chested Billionaire?

The Billiinaire who stole all his money, errr got tips for selling off state assets.

Is this some homo-erotic fascination with bare chested strong man Putin?

Why do all Zero Hdgers want America to fail, and Putin, the land grabber, to win?

Questions, Questions, Questions.

Thu, 07/17/2014 - 08:31 | 4966696 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Meh, just a dip before they take off again.

Thu, 07/17/2014 - 08:37 | 4966719 gold_pa3ot
gold_pa3ot's picture

take off? you mean dead cat bounce, dont you?)

Thu, 07/17/2014 - 08:51 | 4966786 Urban Redneck
Urban Redneck's picture

You do understand how much money the BRICS must drive into debt instruments and how much they need to inflate asset prices in order to dislodge USD from its perch?

Thu, 07/17/2014 - 08:32 | 4966702 Dr. Engali
Dr. Engali's picture

Can't we all just get along?

Thu, 07/17/2014 - 08:41 | 4966741 highly debtful
highly debtful's picture

Yes, TPTB are really smart. First, they set up a completely interdependent global economy, then some wise guy starts imposing sanctions. It's like stabbing at your own body.

Thu, 07/17/2014 - 08:45 | 4966764 fonzannoon
fonzannoon's picture

All this tomfoolery just to keep crude above $100 and the dick in joe six packs ass...

Thu, 07/17/2014 - 08:36 | 4966716 Spungo
Spungo's picture

Unobtanium sounds nice. How many middle eastern people do we need to kill to get it?

Thu, 07/17/2014 - 08:36 | 4966718 MFL8240
MFL8240's picture

Laughable!   Contrived propaganda.

Thu, 07/17/2014 - 08:40 | 4966730 fattail
fattail's picture

Oh no...  no dollar funding.  If only there was an international organization that provides non dollar liquidity between strategic partners according to some bilateral currency agreements.  

 

If only they had been smart enough to set up such an organization before these sanctions.

 

Putin is has Obama's queen in check and Obama keeps making his x in the lower left corner.

 

Although I am questioning how dumb Barry can really be.  The more time that passes the more this looks like an intentional setup for disaster.

Thu, 07/17/2014 - 08:43 | 4966743 yogibear
yogibear's picture

Obama wants to look tough before the November election.

Maybe Putin can make him look more stupid. It's time for Obama to go golfing again and hob knob with his contributors with their envelops.

Thu, 07/17/2014 - 08:45 | 4966762 RaiZH
RaiZH's picture

So bullish !

Thu, 07/17/2014 - 08:45 | 4966767 Last of the Mid...
Last of the Middle Class's picture

Obamas version of war is no more anus for you! BRICS are forming up Yellen did a 180 to tighten and try to force their hand and the rest of the US is just along for the ride. Happy days are here again, just make sure you hedge if the whole thing goes to shit.

Thu, 07/17/2014 - 09:10 | 4966890 tucano
tucano's picture

If you're feeling bold, go scoop up some rubles on fire sale.  IBKR pays 6.5%-2% over their tier 1 cutoff (which is about 10K USD).  It seems to me this might be one undervalued asset in the current bloat we live in.

Thu, 07/17/2014 - 09:14 | 4966908 Rootin' for Putin
Rootin' for Putin's picture

If Putin is low on USD, why doesnt he just print his own?  Works for the Fed.

Thu, 07/17/2014 - 09:47 | 4967080 potato
potato's picture

You can acquire $100 bills of better quality than the real deal in North Korea for $70 per $100

Thu, 07/17/2014 - 09:20 | 4966930 earleflorida
earleflorida's picture

,just three months til a ukranian winter, and blowback in, 1...2...3...

Thu, 07/17/2014 - 09:24 | 4966945 Republi-Ken
Republi-Ken's picture

But Tyler, you told us that Putin always wins.

Tyler you told us Obama had no economic power and was weak to strong, bare chested Putin.

Tyler how is this possible?

And why do all the Zero Hedgers love Putin, that bare chested Billionaire?

The Billiinaire who stole all his money, errr got tips for selling off state assets.

Is this some homo-erotic fascination with bare chested strong man Putin?

Why do all Zero Hdgers want America to fail, and Putin, the land grabber, to win?

Questions, Questions, Questions.

Thu, 07/17/2014 - 09:40 | 4967035 omrizario
omrizario's picture

Putin will wait for the winter to impose his sanctions.

Thu, 07/17/2014 - 10:17 | 4967239 syntaxterror
syntaxterror's picture

Buy the dip. The Pouty Faggot's sanctions have been an obvious boon for Russian stawks.

Thu, 07/17/2014 - 10:17 | 4967242 vyeung
vyeung's picture

BUY BUY BUY!

Thu, 07/17/2014 - 10:33 | 4967313 GERxit
GERxit's picture

In the name of freedom, democracy, human rights etc. Europeans will:

1. scrap their Russian gas supplies 
2. and freeze in the winter until they have built up LNG terminals to buy US shale gas!
3. be allowed to buy fracking technology from the US to also join into ruining their countries environmentally 
4. as a reward agree to even more spying!!

Oh Land of the Free we adore you so much... no prophaganda-machine is better run than yours.
We also love to see how you handle the ISIS situation in the country you have invaded and destabilized for weapons of mass destruction never found!

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