Ukrainian Eurobond correction

Обзор облигаций 26.01.2015 After a significant price decline last Thursday, last Friday's news provided a bit more positive impact on the Eurobond market. As the Minister of Finance of Ukraine said last Friday that the MoF will fulfill all payments on time now, spreads slightly tightened at the close. With US treasury YTMs declining, the yield curve was adjusted to 18.09-88.36% and the CDS declined to 2,284bp. Investment implications: As CDS slightly declined last Friday, today's news will have a significant impact of yield movements. If there is no negative news on Ukraine's economy or debt payments, yields could decline slightly.