09:51 Jul. 12, 2016
Dollar-debt yield falls below 8% first time since January ‘14
The global search for bond returns has pushed Ukrainian government debt to highs not seen since before the first bullets were fired amid anti-government protests on Kyiv's central Maidan square more than two years ago.
The yield on the country's three-year dollar debt fell below 8 percent on Monday, July 11, for the first time since January 2014, when pro-Russian president Viktor Yanukovych was still clinging to power and the Crimean peninsula was part of Ukraine.
Yields have tumbled more than four percentage points and the local currency has rallied since the peak of a government standoff in February this year before the appointment of a new prime minister diffused a fresh political crisis.
The rally signals investors are wagering on the country's recovery after a USD 15 billion debt restructuring last year and as the government edges closer to unlocking the next payment in a USD 17.5 billion bailout from the International Monetary Fund.
Investors worldwide are also looking for higher-yielding assets at a time when bets for a new bout of central bank stimulus push almost USD 10 trillion in securities tracked by Bloomberg to yield less than zero. Full story