Bonds: Eurobond YTMs slightly volatile

Обзор облигаций 15.09.2014 After Ukrainian Eurobonds declined slightly last Thursday, yields remained rather stable last Friday with slight volatility, partially due to 5-year and 10-year US Treasury YTMs rising 3bp and 6bp to 1.82% and 2.61%, respectively. At last Friday's close, the yield curve adjusted to the range of 9.88-12.31%, as UKRAIN 6.875% '15 remained steady at 12.30%, UKRAIN 6.58% '16 was up 63bp to 12.28%, UKRAIN 6.75% '17 rose 1bp to 10.97%, UKRAIN 9.25% '17 rose 10bp to 12.11%, while UKRAIN 7.95% '21 was up 4bp to 10.10%, and UKRAIN 7.80% '22 and UKRAIN 7.50% '23 increased 5bp to 9.93% and 9.88%, respectively. The 5-year CDS rose to 1,117bp. Investment implications: Following last Friday's announcement of further European sanctions on Russia, Ukrainian Eurobonds were rather stable without significant movements. However, the new sanctions launched by the US and Ukrainian government could instigate a negative reaction from Russia, causing investor sentiment to become more negative.