Fixed Income
July 26, 2021
Quotes for the actively traded Ukraine-28s issue declined by 0.7% to 118.5 (6.6% YtM) and the benchmark medium-term Ukraine-26s decreased by 0.5% to 110.2 (5.4% YtM). The VRI derivatives (linked to Ukraine’s future GDP growth with expiration in 2040) corrected by 1.1% to 116.2 cents on the dollar after the government assessed second-quarter GDP growth at 6% YoY, which was far below expectations due to the low comparison base of 2Q20 when there was a strict quarantine worldwide. It now looks unlikely that Ukraine’s GDP growth will reach 4% for the full-year.
