Bonds: Eurobond YTMs up slightly

Обзор облигаций 09.09.2014 Ukrainian Eurobonds slightly corrected yesterday after a few days of improvement, as YTMs increased after the US market opened. At yesterday's close, the yield curve adjusted to the range of 9.49-12.72%, as UKRAIN 6.875% '15 rose 110bp to 12.72%, UKRAIN 6.58% '16 was up 15bp to 11.18%, UKRAIN 7.95% '21 was up 44bp to 10.04%, UKRAIN 7.80% '22 rose 5bp to 9.49% and UKRAIN 7.50% '23 increased 50bp to 9.89%, while UKRAIN 6.75% '17 declined 30bp to 10.03% and UKRAIN 9.25% '17 slid 20bp to 11.92%, The 5-year CDS rose to 1,016bp. Investment implications: Ukraine's political instability and the fragile ceasefire in eastern Ukraine are the main reasons for negative market sentiment. While the newly issued IMF and WB loans had no positive impact on market sentiment, Ukraine has no impending large debt repayments except for the Naftogaz Eurobond redemption which should receive government and NBU support.