You're reading: Bloomberg: Ukraine bond selloff deepens as invasion threat exposes risks

The rout in Ukrainian assets worsened, with the nation's restructured bonds heading for their worst week since May, on concern a flare-up in fighting between government troops and separatists in the country's east may be a precursor to a full-blown conflict.

The yield on the government’s $1.7 billion Eurobond due 2019 rose 15 basis points to 8.51 percent by 1:26 p.m. in Kyiv, bringing the increase this week to 44 basis points. The hryvnia currency slumped toward to the weakest level in three months after President Petro Poroshenko warned on August 18 of a possible invasion by Russia.

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