Fixed Income
Quotes for Ukrainian sovereign Eurobonds moved sharply higher last week ahead of the signing of the free trade portion of the country’s historic Association Agreement with the European Union on Friday (Jun 27). The document, the political portion of which was signed back in March, slashes trade barriers with the EU and requires the country to implement an ambitious program of economic and regulatory reforms. Among other major news impacting Ukraine’s Eurobond universe, Russia’s upper house of parliament voted, at the request of President Putin, to rescind the president’s authorization to use military troops in Ukraine. The move appeared to be a symbolic effort by the Russian side to defuse tensions in Eastern Ukraine, where sporadic fighting continued despite a week-long ceasefire.
