Ukraine Bond Rout Worsens on Bets Political Tussle to Block Aid
- Yield on 2019 bonds climbs above 11 percent for first time
- Bonds may fall until parliamentary report next week: Dragon
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Ukrainian bonds slid, sending the yield on the nation’s shortest-dated restructured debt above 11 percent for the first time, as a political shakeup raised the likelihood for further delays to an international bailout that’s keeping the country afloat.
The $1.15 billion of bonds maturing in September 2019 dropped 2.22 cents to 90.25 cents on the dollar, pushing the yield up 82 basis points to 11.14 percent by 3:53 p.m. in Kiev. The rate has increased more than 1.5 percentage points since the resignation of a reform-minded economy minister on Wednesday sparked concern the move heralded the start of a political crisis that would impede Ukraine’s ability to implement policies needed under a $17.5 billion International Monetary Fund loan.