Fixed Income

April 26, 2016

Ukraine’s sovereign Eurobonds saw notable gains last week, boosted by demand for emerging market debt papers after Argentina’s USD 16.5bn bond sale attracted intense investor interest. The deal’s underwriters received nearly USD 70bn in orders for the bonds, the Wall Street Journal reported. The benchmark 10-year sovereigns, Ukraine-26s, rose 2.5% to 91.3/92.0 (9.1%/8.9%), and the shortest outstanding issue, which is due in 2019, added 2.4% to 96.5/97.3 (9.0%/8.7%). The VRI derivatives (linked to Ukraine’s future GDP performance) were unchanged at 32.0/33.0 cents.