Fixed Income

March 25, 2019

Ukrainian sovereign Eurobonds moved substantially higher last week after the US Federal Reserve scaled back its projected interest-rate increases this year to zero, sending benchmark Treasury yields to the lowest level in more than a year. The central bank’s signal also gave risk assets around the world a solid nudge higher. With one week remaining before Ukraine’s presidential election, opinion polls still show President Poroshenko, leftist opposition leader Yulia Tymoshenko, and entertainment mogul Volodymyr Zelenskiy as the front-runners in the race. Zelenskiy has a clear lead while Poroshenko are battling for the second runoff spot, with the decisive vote to be held on Apr 21. Poroshenko began his re-election campaign as an unpopular leader, but he has managed to improve his ratings by guaranteeing that the country’s post-2014 changes will remain intact if he wins a second term. Indeed, many Ukrainians fear that if he is defeated, his successor will not be strong enough to resist