Ukraine’s Bonds Extend Gains as Kremlin Confirms Summit Plans
Ukraine’s dollar bonds extended gains after the Kremlin confirmed plans for a meeting between the Russian and US leaders, rekindling bets on a potential truce between Moscow and Kyiv.
The war-torn nation’s debt securities were the best performers Thursday across emerging and frontier markets tracked by Bloomberg, with some of the notes hitting their highest in as many as four months.
The advance in Ukraine’s debt started to gather pace as Donald Trump said Wednesday there was a good chance he would meet with Vladimir Putin and Ukrainian President Volodymyr Zelenskiy soon in another bid to broker peace between the two countries. The rally accelerated after the Kremlin confirmed Thursday that Russia and the US had agreed on a venue for a meeting between the two sides, with a goal for the talks to take place next week.
Read more: Trump Says ‘Very Good Chance’ He Meets Putin and Zelenskiy
Ukraine’s dollar bond due in February 2029 was up more than 3 cents on the dollar to 65 cents, with other securities also rising. Still, the Ukrainian debt traded well below levels seen around February, when bets still lingered that Trump would deliver on campaign pledges to bring peace to Ukraine early in his presidency.
“It is positive, hence bonds rallying, but we’ll need to see follow through for continued upside,” said Roger Mark, a fixed-income analyst at Ninety One UK Ltd., in London. “Focus will turn to what is discussed at the meetings.”
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