Fixed Income
Ukrainian sovereigns continued to recover last week, supported by the idea that the government and private creditors will be able to reach a reasonable compromise on debt restructuring during ongoing closed-door negotiations. Meanwhile, representatives from Ukraine, the OSCE, Russia, and the Donbass separatist leadership met in Minsk, with little progress toward finding a long-term diplomatic solution to the situation in the occupied southeastern territories. In a briefing after the talks, the OSCE’s Martin Sajdik said a decision on withdrawing weapons smaller than 100 caliber could be reached at the next meeting, but nothing new was revealed about the standoff between Kyiv and the separatists over the holding of local elections in the DNR and LNR enclaves. Benchmark Ukraine-23s gained 0.9% to close at 54.3/55.5 (19.0%/18.5%), and the closely-watched USD 2.6bn Ukraine-2017 issue rose by a solid 2.9% to 52.0/53.3 (49%/48%). The USD 500mn Eurobonds maturing in September, which remain on
