Comment: Ukrainian eurobond market as of 16 October
Svitlana Rusakova, International Fixed Income Sales, Dragon Capital
Ukrainian Eurobonds rallied yesterday supported by IMF-related news flow. Media reported an IMF technical mission will visit Ukraine on Oct. 26, on the eve of the parliamentary elections, while new indications appeared of the ruling Party of Regions’ potential readiness to implement a retail gas price hike in early 2013 to unfreeze IMF lending. The long end of the sovereign closed 1.25-1.5pt higher on the day, with benchmark Ukraine 20s and 21s quoted at 102.75/103.75 (7.29/7.12%) and 103.75/104.75 (7.34%/7.18%). In the corporate sector we saw better bids in Oschadbank at 95.0/96.5 (10.02/9.48%) and FXPOLN at 95.75/96.75 (9.34%/8.99%) and retail demand in Mriya at 97.0/98.5 (12.03/11.48%). But activity was quite limited overall.