Ukrainian bonds in US dollars rose in price by 1.5 cents after Donald Trump’s statements about the need for a truce with Russia as soon as possible. About this informs Bloomberg.
The increase in value was recorded for papers maturing in 2035 and 2036. On Monday, six out of the eight most profitable debt instruments among emerging markets belonged to Ukraine.
During a visit to Scotland, Trump said he was willing to give Vladimir Putin a new deadline of 10 to 12 days to conclude a truce, shortening the previous 50-day deadline that was set to expire on September 2. His statement raised expectations of a negotiation process and spurred movement in the market.
Despite this, since the beginning of the year, Ukrainian bonds have lost 12% in value, which is the worst result among countries with developing markets. Analysts see potential for tactical buying in the current situation due to attractive valuations and low investor engagement. Earlier, Trump threatened Russia with tough economic sanctions if the war continued, but in response, Moscow intensified its attacks on Ukrainian cities.
Ukrainian dollar bonds are now up for a fifth straight day, hitting record highs on expectations that concrete parameters of a potential deal to end the war could emerge next week. The growth was also facilitated by the adoption by the US House of Representatives of a package of financial assistance to Ukraine in the amount of 61 billion dollars.
