Fixed Income

May 02, 2018

Quotes for Ukrainian sovereign Eurobonds fell in line with other emerging market debt last week as the rising dollar made investments in EM bonds less attractive. The dollar has been surging as the Federal Reserve continues to lead other central banks in moving away from a decade of near-zero interest rates and so-called quantitative easing. The benchmark long-term Ukraine-27s issue lost 1.2% to close at 98.1/99.1 (8.0%/7.8%), and medium-term Ukraine-23s shed 0.8% to 101.0/101.7 (7.5%/7.4%). The VRI derivatives (linked to Ukraine’s future GDP growth with expiration in 2040) slipped 0.7% to 67.6/68.6 cents on the dollar.