Ukraine CDS and yields spike as ralliers call for revolution | beyondbrics

Ukraine CDS and yields spike as ralliers call for revolution | beyondbrics:

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What do markets make of the weekend’s events in Kiev? Here’s what: the price of insuring against a default on Ukrainian debt in the next five years surged almost 100 basis points on Monday morning, while the price of the country’s benchmark 2020 dollar bond fell more than 2 percentage points to a two-month low of 85 cents on the dollar.

An estimated 350,000 people demonstrated in Kiev at the weekend, protesting against the government’s decision not, after all, to sign association and free trade agreements at last week’s long-awaited EU Eastern Partnership summit in Vilnius. In a reminder of the Orange Revolution that toppled the government in 2004, opposition leaders called for the prime minister and president to resign.

Reuters quoted data provider Markit as saying the cost of a five-year credit default swap on Ukrainian debt rose to 1067 basis points on Monday, up from Friday’s close of 972 bp. The price of Ukraine’s dollar bond maturing on September 23, 2020 fell to $85.84 as the yield rose to 10.73 per cent."

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