Fixed Income

July 01, 2019
 

Ukrainian sovereign Eurobonds experienced a period of consolidation last week after their robust growth seen since late May. Meanwhile, investor sentiments toward emerging market debt remain positive on the back of central banks leaning toward dovish monetary policies. Ukraine’s newly issued EUR-denominated 7-year Eurobonds with a coupon of 6.75% now trade at a yield of just 5.85%, with the bond’s value having grown to 104.4/105.4 (6.0%/5.8%). The country’s total public debt decreased by 1.8% or by USD 1.44bn in May to USD 78.4bn, according to the latest statistics from the Finance Ministry. The debt to GDP ratio is now estimated at near 57%.