Ukraine's dollar bonds jumped in price, and Eastern European currencies strengthened after signs of progress in reaching a US-backed peace plan that could end hostilities after nearly four years of Russia's war against Ukraine, Bloomberg reports, writes UNN.
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Ukraine's dollar bonds maturing in 2029 rose 3 cents per dollar, exceeding 72 cents, the highest since February. Bonds maturing in 2035 and later years, issued as part of last year's restructuring, also became among the leaders in growth among emerging market debt on Monday, the publication writes.
As the publication notes, "although a deal acceptable to the government in Kyiv still faces serious obstacles, investors are buying the country's securities at any sign of movement towards a settlement." Improved regional sentiment also contributed to the growth of assets in neighboring countries.
"We have faced a similar situation several times before, but it seems that the pressure of sanctions has made Russia a little more interested in a peace agreement than usual," ING Bank strategist Chris Turner said in his note on Monday. "The prospects for a peace agreement in Ukraine are beginning to manifest themselves in currency terms."
The Hungarian forint, Polish zloty, and Czech koruna rose by approximately 0.2% against the euro, with stock exchanges in Budapest and Prague also showing growth.
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Following diplomatic activity over the weekend, Ukrainian and American negotiators prepared an "updated and clarified peace framework document," according to a senior aide to President Volodymyr Zelenskyy, amid Kyiv's efforts to secure more favorable terms on a proposal backed by US President Donald Trump, the publication writes.