UKRAINE

Fixed income: Reports of progress in the sovereign restructuring talks (5%

haircut proposed by bondholders and MinFin expressing readiness to find a

“collaborative number”) resulted in a rather aggressive move higher on

Friday. The sovereign curve rose 2pt, with a number of issues trading around

60pt at one point but softening a bit into the close. Quasi-sovereigns

outperformed, rallying by 2.5-3pt with supply short and demand seemingly

going after more understandable yield levels (vs. the sovereign’s still

uncertain situation). EXIM 22s and 25s are already trading sub-14% yield.

MHPSA 20s added 0.5pt while the rest of the corporate space was relatively

inactive.