Russia Halts Federal Government Bond Auctions Indefinitely Amid Rising Borrowing Costs

Russia's Finance Ministry has indefinitely suspended its federal government bond auctions (OFZs) due to increasing borrowing costs and weakening investor demand. This action complicates the government's efforts to finance a widening wartime budget deficit, which reached 5.7 trillion rubles ($72.39 billion) by the end of June. The RGBI government bond index has fallen to its lowest level this year, with yields on long-term bonds climbing above 16.5%.