Bullish On Eurobond Despite Recent Yield Spike

The government's November 21 announcement that it would not make any significant repayment of arrears in 2012 caused the yield on the US$2032 eurobond to rise to 13.7% on November 22 (from 12.5% on November 8). The government also announced that (as expected) it would resume coupon payments in June 2012. Despite this rise and the volatility we may see around the parliamentary elections in December, we are maintaining our long-term bullish view on the eurobond

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