Russian Central Bank to Conduct Open Market Operation, 10-Year Yield Surged 19.7% at Pre-Market

Russian Central Bank will buy government bonds in an open market operation on Monday, the government regulator said on Friday afternoon.

Trading of bonds and shares on Russia’s financial markets has been suspended since February 25, following the economic sanctions on Moscow for its invasion of Ukraine that sent the rubble tumbling.

Governor Elvira Nabiullina made the announcement in a press conference Friday afternoon.

“We are now ready to gradually resume trading on the Moscow Exchange. On Monday, trading will open for government bonds,” she said.

“In order to neutralize excessive volatility and provide balanced liquidity, the Central Bank will buy government bonds.”

Following the announcement, on Monday yield on Russian 10-year benchmark reached 19.7% at opening of pre-market trade.

On a separate occasion, Russian central bank also announced to have sold 1.7 trillion roubles at one day “fine-tuning” repo auction on Monday.