Eurozone sovereigns in race to escape escalating Ukraine crisis

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By Craig McGlashan
28 Aug 2014

Senior SSA bankers have named the Russia-Ukraine crisis as the one thing that could disrupt the issuance plans of the eurozone’s peripheral sovereigns. As Ukraine on Thursday accused Russia of marching troops into its territory, core eurozone bond yields rallied away from their peripheral cousins leaving market participants hoping that Greece, Portugal and Spain would complete their remaining funding before things got any worse.

On Thursday morning, Ukraine president Petro Poroshenko cancelled a visit to Turkey after claiming Russia had moved troops into the east of his country, widening spreads between the eurozone core and periphery as investors sought the safest of assets.

Poroshenko’s claims sent 10 year Bund yields ...

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