Fixed Income
Ukraine’s benchmark long term Eurobond sold off sharply last week as military conflict in the eastern provinces kept Ukraine in the headlines of international newswires for all the wrong reasons. The Ukraine-23 issue fell 3.1% to 84.0/88.8 (10.3%/9.4%). The interim central government in Kyiv threatened to “blockade” pro-Russian paramilitaries in the eastern city of Slavyansk while telling the Kremlin that any crossing of the border by Russian troops on maneuvers will be seen as an invasion. The high temperature of tensions outweighed the latest positive comments from IMF representatives and US President Joseph Biden, who visited Kyiv on Tuesday, stating that a decision to provide Ukraine with a USD 17bn financial aid program could be approved as soon as this week on Apr 30.
