Ok, now I cannot avoid it any further. How can I claim a blog on Emerging Markets with no comments on the situation in Ukraine. So, here it goes.

First, let´s take a look on the main fixed income indicator of Ukraine – the cash price on the Ukrainian government bond (USD denominated) that matures in the beginning of June this year (the technical term is UKRAIN 7.95 06/04/14 $). The cash price was slightly above 100 in January. But, as the situation escalated with demonstrations that turned more and more violent, the fall of Viktor Yanukovych and the current situation in the Crimea, the price of the short dated bond has dropped to a current price of around 93. With a current price of 93 and less than 3 months to maturity, the bond yields 41 %.