Fixed Income
June 10, 2013
Ukrainian sovereign and corporate Eurobonds were hit by a heavy selloff last week as rising bond yields in the US and Japan and an improving US economic outlook dimmed the allure of emerging-market assets. However, global risk appetite began to rebound at the end of the trading week on Friday afternoon, after the release of US jobs numbers that were viewed as not strong enough to roll back the Federal Reserve’s monetary stimulus policy. Quotes for Ukraine’s 10-year benchmark Eurobonds fell 4.5% to 92.8/93.7 (8.6%/8.5%), with the spread over US Treasures widening by 60 basis points, from 570 bps to 640 bps. Short term Ukraine-14s lost 1.2% to end at 100.8/101.4 (7.1%/6.4%).
