Fixed Income

July 25, 2017

Quotes for Ukrainian sovereign Eurobonds rose again last week, pushing the yield on the 10-year note below 8% for the first time since shortly after the bonds were issued in late 2015. Investors cheered the fact that consumer sentiments in the country reached the highest level in three years, according to a monthly survey conducted by GfK Ukraine. The data was supported by the latest release from UkrStat, which indicated that retail sales jumped by 7.3% YoY in 1H17. In IMF program related news, Fund spokesman William Murray said that pension reform, privatization and the fight against corruption remain the key requirements for the disbursement of the fifth tranche of USD 1.9bn to Ukraine. The IMF representative conspicuously did not mention the land reform requirement, which means Parliament could delay a vote on farmland market launch at least until the middle of autumn. Benchmark Ukraine-27s rose by 0.8% to 98.8/99.4 (7.9%/7.8%) and Ukraine-19s (due in just over 25 months from now