10 Countries With The Highest 10-Year Bond Yields Today

8. Russia

10-Year Yield: 7.58%

Due to its dependency on oil, Russian economy was hit hard by the drop in oil prices. With the economic sanctions and a declining currency that led to an outflow of capital, the Russian economic growth slowed down to 0.7% in 2014, when the first round of sanctions was imposed over the Russian invasion of Crimea, and the GDP declined by 2.8% in 2015. At the same time, inflation rate amounted to 7.8% in 2014, 15.5% in 2015 and 7% in 2016. In turn, this sent the bond yields rallying. The Russian 10-year bond yield has surged above 10% towards the end of 2014 and reached a high of 15.9% in December. However, since then, the Russian ruble has been gaining ground and it is expected that the inflation will reach the central bank’s 4% target soon, in addition to central bank’s signals that it would further reduce interest rates.

Pixabay/Public Domain