LONDON, April 12 (Reuters) - The cost of insuring exposure to Russian debt fell on Thursday from an eight-month high and dollar bond yield spreads narrowed slightly after blowing out in recent days on tensions between the United States and Russia.
Russia's five-year credit default swaps fell to 145 basis points (bps) according to IHS Markit data, down 7 bps from Wednesday's close. It hit eight-months highs of 162 bps on Wednesday.
The average bond yield spread of Russian sovereign bonds over U.S. Treasuries on the JPMorgan EMBI Global Diversified index narrowed 3 bps to 232 bps. However, the spread remains more than 50 bps more than where it was towards the end of last week.
The rouble also firmed 0.3 percent against the dollar, edging off the November 2016 lows it matched on Wednesday. The currency has lost around 10 percent since the sanctions were announced.
Relations between Russia and the U.S. had deteriorated following the imposition of fresh sanctions by the U.S. on Russian businessmen and companies last Friday. Tensions subsequently escalated with a dispute over Syria. (Reporting by Claire Milhench; editing by Sujata Rao)