Ukrainian Bonds: Time to Take Profits

Trading update

Ukrainian sovereign bonds kept rallying all of last week, reflecting investors’ improving perception of Ukrainian risk. Sovereigns saw strong demand across the whole curve with Ukraine 11s moving up to 100.0/101.5 (+200bp w-o-w) and 13s to 100.5/102.0 (+250bp). Naftogaz 14s surged to 102.5/103.5 (+425bp) under buying pressure. Quasi-sovereign Ukreximbank 11s and 12s climbed higher also – to 98.5/100 (+250bp) and 95.5/97.0 (+350bp) respectively. Banks refused to underperform, with FUIB 14s rising to 91.0/93.0 (+300bp), Privatbank 12s to 94.0/95.5 (+300bp) and Finance & Credit Bank 14s to 82.0/84.0 (+500bp). VAB Bank bonds were steady at 84.0/86.0.