LONDON, March 19 (Reuters) - The premium demanded by investors to hold Russian sovereign dollar bonds over safe haven U.S. Treasuries widened on Monday to a year-to-date high amid ongoing tensions with the West and an upcoming U.S. rate decision.
The average yield spread of Russian dollar bonds over U.S. Treasuries on the JPMorgan EMBI Global Diversified index widened by 3 basis points (bps) from Friday’s close to as much as 175 bps.
Moscow has come under increasing international pressure following a nerve toxin attack on a former Russian double agent on British soil. Investors are also eyeing this week’s U.S. Federal Reserve meeting at which it is widely expected to raise rates. (Reporting by Claire Milhench, editing by Karin Strohecker)