Eurobond YTMs correct slightly

Обзор облигаций 25.09.2014 At yesterday's close, the yield curve adjusted to the range of 10.24-18.28% as UKRAIN 6.875% '15 fell 186bp to 18.28%, UKRAIN 6.58% '16 declined 74bp to 14.56%, and UKRAIN 6.75% '17 declined 58bp to 12.64%, while UKRAIN 9.25% '17 declined 96bp to 14.31%, UKRAIN 7.95% '21 was up 59bp to 10.81%, UKRAIN 7.80% '22 slid 30bp to 10.42% and UKRAIN 7.50% '23 declined 49bp to 10.24%. The 5-year CDS slid to 1,234bp. Investment implications: The significant increase on Tuesday corrected yesterday and the yield curve slightly adjusted to below 20% but remained above 10.0% on high risks of an imminent default. Despite the negative expectations, the MoF most likely fulfil the scheduled debt repayment as well as the Naftogaz Eurobond redemption.