Fixed Income
Quotes for Ukrainian sovereign Eurobonds declined sharply amid a wipe-out in the value of bonds world-wide last week after the upset victory of Donald Trump in the US presidential election. Investors expect that a Trump administration will adopt populist growth policies that will accelerate inflation, thereby pushing up bond yields. Bloomberg reports that yields on US 30-year bonds saw their biggest 1-week decline in value since January 2009. A separate concern regarding President Trump is how he will treat Ukraine in the country’s conflict with Russia, with the consensus being that Ukraine will have to prepare itself for a reduced level of support, including a rollback of the sanctions that have been in place against Moscow since early 2014. President Poroshenko’s administration tried to hide its disappointment over the US election result by floating a possible visit of Poroshenko to Washington in February.
