Fixed Income
Ukrainian sovereign Eurobonds declined in value amid another tough week for global fixed income instruments in a rising yield environment. US Treasuries suffered their worst month since 2009 as investors worried that incoming President Donald Trump will implement inflationary economic policies that would devalue debt; hikes in short-term interest rates is also expected from the Federal Reserve. The 10-year Treasury’s price fell steadily throughout November, driving the yield up to 2.37% from 1.82% at the start of the month. In Ukraine-related developments, there was controversial media coverage of the country’s missile testing exercises in the south of the country near Crimea. President Poroshenko emphasized that the missile launches were performed in Ukrainian airspace, over the open seas, in strict compliance with international law. The Russian government said it had launched a formal complaint, but the tests appeared to have passed without incident.
