05 Февраля 2018

Ukraine’s sovereign Eurobonds declined last week amid a global trend of rising yields, as the latest US jobs report indicated that an uptick in inflation may not be far off. A falling dollar last month has also helped drive yields higher. The yield on the benchmark 10-year Treasury note surged to 2.8%, its highest since April 2014. US Treasuries weren’t the only sovereigns making headlines, as the German 5-year note broke above zero yield for the first time since December 2015. In Ukraine related events, the IMF said that the adoption of the bill on anti-corruption courts and bringing natural gas prices to the market level were the key conditions for the completion of the fourth review of the USD 17.5bn loan program for the country. The goal for the introduction of market prices on the gas market is to avoid artificial segmenting of the market separately for households and for industry. The IMF’s statement notably left out the creation of a commercial land market in Ukraine, which was previously viewed as a must for any new disbursements.