US-Russia Talks Fuel Demand for Bonds That Fund Putin’s War
US-Russia Talks Fuel Demand for Bonds That Fund Putin’s War
Government spending surged by more than 70% in January, leading to an outsized deficit. At the same time, export revenue could come under pressure from sanctions former US President Joe Biden imposed before leaving office — the most aggressive yet on Russia’s oil industry.
“The main trigger and driver of the increase in demand for OFZs was events in geopolitics,” including renewed negotiations with the US, said Iskander Lutsko, head of portfolio management at Istar Capital. Bets that the war will end soon are leading to growing interest among domestic institutional investors, management companies and banks, he said.