“Given still light positioning, there is a potential for ongoing massive foreign inflows into UAH bonds,” ICU predicted yesterday in a 20-page report on the government hryvnia bond market, “UAH bonds – attractive again.” Ukraine’s bonds offer relatively high yields against a background of relatively modest macro, credit, and FX risks, especially on a short-term horizon,” writes the Kyiv investment bank. “High real rates, fast economic recovery, and favourable external conditions support the currency…By the end of the year, we see the currency close to current levels (UAH27.5-28/USD).”
“Given still light positioning, there is a potential for ongoing massive foreign inflows into UAH bonds,”
