The US is considering blocking Russia’s ability to pay its US bondholders by allowing a key waiver to expire next week, Reuters reported, citing a Biden administration official late Tuesday.

Key quotes

"It's under consideration but I don't have a decision to preview at this time.”

"We are looking at all options to increase pressure on (Russian President Vladimir) Putin."

These comments come as Russia has a looming May 25 deadline when a US license allowing it to make payments is due to expire.

Market reaction 

Risk sentiment is turning sour in Asia this Wednesday, in the face of hawkish Fed expectations, surging Beijing’s covid cases and Japanese GDP contraction.

The US dollar index is back on the bids, having stalled its correction, as the S&P 500 futures drop 0.15% on the day.