Russia Crashes Into Bear Market As Europe Drops Most In 9 Months

Broad European stocks dropped 3.3% on the week – the biggest fall since June of last year. Despite a late-day surge on the back of surprising relief from Lavrov’s comments on not invading Ukraine (well, he’s hardly going to pre-announce) Germany has seen its worst 2-week drop in 28 months. Sovereign bond spreads rose 10-13bps on the week for the peripheral nations (which is actually notable given how tight they trade now). Russian stocks have plunged 22% from Feb 18th highs and Russian 10Y bond yields surged to near 10% yields. Ukraine’s short-date bonds remain at yields around 50% and the Hyrvnia is losing ground.

Germany’s DAX is back at 5-month lows and this is the worst 2-week slide since Nov 2011…