MOSCOW Feb 4 Russia's finance ministry
cancelled its weekly domestic bond auctions for the second week
in a row on Tuesday, saying in a statement the decision was
"based on an analysis of current market conditions".
Yields on so-called OFZ bonds have risen by 70-80 basis
points since the start of the year. A new ministry sale could
have potentially pushed the rates higher, analysts said.
Emerging markets such as Russia have been hit hard this year
by outflows from investors following the U.S. Federal Reserve's
tapering of its monetary stimulus.
The Russian finance ministry has cancelled auctions before,
waiting until market conditions improve. Russia, which envisages
a budget deficit of only 0.5 percent of gross domestic product
this year, is under no great pressure to borrow.
"Given the fact that the (rouble) weakening will provide
additional revenues to the federal budget, the finance ministry
can flexibly control the amount of borrowing and completely stop
placement, if it deems rates unacceptable in real terms," said
Alexei Tretyakov, head of Arikapital investment company in