Fixed Income
Ukrainian sovereigns ended marginally higher last week, with the benchmark 10-year issue rising 0.4% to close at 99.4/100.0 (7.6%/7.5%) despite a sizable 1.3p.p. correction on Thursday, which was the worst day of 2013 thus far for European financial markets. Medium-term Ukraine-16s edged up by 0.5% to 99.9/100.5 (6.6%/6.4%). On the domestic primary debt market, the Finance Ministry raised UAH 1.5bn at its auction on Tuesday (May 21) by selling UAH-denominated 5-year bonds at 14.25% and USD-denominated 2-year bonds at 7.75%. Corporate names were mixed, with Avangard-15s rising 1.7% to close at 102.9/103.6 (8.7%/8.4%), while Metinvest-18s fell 1.3% to 101.0/101.9 (8.5%/8.3%). In the top banking debt papers, action was limited. In lower-quality issues, VAB-14s and Finance&Credit-14s both rose by 2.3%, to 77.0/80.0 (38.4%/34.2%) and 87.0/89.0 (34.6%/30.5%).
