Fixed Income

July 22, 2013

Ukraine’s sovereign yield curve shifted down with the yield on benchmark 10-year bond declining from 9.9% to 9.2%. Investors got some relief from Ben Bernanke speech as the Fed chairman stressed that the timeline for winding down stimulus program was not set in stone. In local events, the Finance Ministry managed to raise USD 207mn at the primary auction on Tuesday (Jul 16). A yield for 2-year USD denominated bonds was set at 8.25% a 50 bps higher than at the previous primary action. Medium-term Ukraine-17s rebounded strongly adding 3.4% to close at 92.7/93.7 (8.9%/8.6%). Quasi sovereign NaftoGaz-14s increased by 0.5% to 99.9/100.7 (9.6%/8.9%).