Ukraine Bonds Slump Along With Reserves as Interbank Rates Rise

Ukraine’s dollar-denominated notes fell and interbank lending rates increased on speculation the sovereign’s ability to pay back debt is decreasing as foreign-currency reserves slump and street protests continue.

The yield on dollar notes due in June 2014 climbed 63 basis points, or 0.63 percentage point, to 18.09 percent by 6:21 p.m. in Kiev, taking this week’s increase to 1.49 percentage points. The rate at which Ukrainian banks lend overnight to each other jumped to a 2013 high of 12 percent today, compared with 4.32 percent on Nov. 29, while three-month deposits increased to