Dynamical mean-field theory is used to study the three orbital model of the
d3 compound SrRu2O6 both with and without explicitly including the
O-p states. Depending on the size of the Hund's coupling J, at low to
intermediate temperatures we find solutions corresponding to Mott or correlated
covalent insulator. The latter can explain the experimentally observed absence
of Curie susceptibility in the paramagnetic phase. At high temperatures a
single phase with smoothly varying properties is observed. SrRu2O6
provides an ideal system to study the competition between the local moment
physics and covalent bonding since both effects are maximized, while spin-orbit
interaction is found to play a minor role
