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.
Along with being the best performing stock market in the world since Trump's election, Russia's bond market has soared (while China's has tumbled).
Perhaps Rex Tillerson was right after all - despite the liberal media's desperation to paint him as yet another 'friend of Putin' - when he questioned the efficacy of US sanctions on Russia this week during his confirmation hearings...
The long-serving executive said the Trump administration needs to review the efficacy of the sanctions and judge whether there might be better ways to try to constrain, or potentially woo, the Kremlin.
"Sanctions, in order to be implemented, do impact American business interests,” Mr. Tillerson said in response to questioning. "When sanctions are imposed, they are, by design, going to harm American business."
"In protecting American interests.…sanctions are a powerful tool. Let’s design them well... Let’s ensure those sanctions are applied equally.”