After shunning bond auctions for nine weeks amid the worstquarter for ruble debt since 2011, Russia indicated it's preparedto borrow at more than 9 percent for the first time in almost fiveyears.

In its first auction since July 16, the Finance Ministry soldall 10 billion rubles (US$262 million) of August 2023 notes onoffer to a single bidder on Sept. 24 at an average yield of 9.37percent. Current yields are “acceptable” and the finance ministryplans to fulfill this year's bond sale plan, it said in an e-mailedresponse to questions on Sept. 26.

“The auction results and the ministry's statement essentiallysay that it's now prepared to pay more than 9 percent,” RomanDzugaev, a fixed-income trader at OAO BFA Bank in St.Petersburg,said by e-mail the same day. “That means there will be more supplycoming, though not necessarily with demand like we saw at thissale.”