Eurobond YTMs continue to decline

Обзор облигаций 08.09.2014 At last Friday's close, the yield curve adjusted to the range of 9.38-11.62% as UKRAIN 6.875% '15 fell 187bp to 11.62%, UKRAIN 6.58% '16 declined 75bp to 11.03%, UKRAIN 6.75% '17 slid 50bp to 10.33%, and UKRAIN 9.25% '17 declined 61bp to 11.43%, while UKRAIN 7.95% '21 declined 64bp to 9.60%, UKRAIN 7.80% '22 and UKRAIN 7.50% '23 slid 49bp and 44bp to 9.43% and 9.38%, respectively. The 5-year CDS declined to 990bp. Investment implications: In response to the ceasefire agreement attained in Minsk and cooled militarization in eastern Ukraine, market sentiment reversed as the yield curve of Ukrainian Eurobonds significantly declined at Friday's close after having risen significantly over the course of last week.