Fixed Income
Quotes for Ukrainian Eurobonds were moderately lower for the final week of July. The uncertainty regarding continuation of the country’s IMF program motivated traders to pocket profits from the recent rally in the country’s debt papers, which has mostly been driven by the global risk-on environment. Still, the correction was moderate, implying that the negative reaction from investors will be relatively mild if the IMF refuses to unlock new financing; the main driver for Ukrainian bonds will probably continue to be external sentiments. IMF spokesman William Murray said the IMF has no precise date of the board review for Ukraine. Officially, Kyiv says it still expects to receive two tranches in the total amount of USD 2.7bn by the end of the year. The shortest outstanding sovereign issue, Ukraine-19s, shed 0.9% to close at 99.5/100.0 (7.9%/7.7%), and the benchmark 10-year bonds, Ukraine-26s, lost 1.3% to 96.5/97.3 (8.3%/8.2%). The VRI derivatives (linked to Ukraine’s future GDP performa
