The ruble weakened and yields on one-year benchmark government bonds climbed to the highest level in a week after a decline in the price of oil, Russia’s biggest export earner. The ruble depreciated 0.2 percent to 32.3975 per dollar at 12:15 p.m. in Moscow, extending a 1.5 percent decline last week. Russia’s currency fell 0.2 percent versus the euro to 40.7500 today and was down 0.2 percent against the central bank’s currency basket. Yields on so-called OFZ notes due in a year rose six basis points to 6.23 percent, the highest level since Aug. 24. Oil fell 0.2 percent in New York as manufacturing unexpectedly contracted in China and crude production resumed in the Gulf of Mexico after Hurricane Isaac. Brent traded little changed at $114.52 per barrel. The ruble gained on Aug. 31 after U.S. Federal Reserve Chairman Ben Bernanke said he wouldn’t rule out more stimulus. “Despite Brent being above $114 per barrel, an emerging negative trend will affect the national currency’s position,� Alexey Egorov, an analyst at Nomos Bank in Moscow, said by e- mail. “Everybody will be watching closely the euro against the dollar and how the situation will develop� following Bernanke’s speech, he said. Non-deliverable forwards show the ruble at 32.8690 per dollar in three months versus 32.8635 on Aug. 31. The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries was unchanged at 222, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year domestic government bond yields compiled by Micex rose two basis points to 7.57 percent. To contact the reporter on this story: Lyubov Pronina in London at lpronina@bloomberg.net To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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