Ukraine's dollar bonds have fallen to their lowest level in four months after US President Donald Trump criticized Russian dictator Vladimir Putin, dampening expectations of a quick ceasefire agreement, Bloomberg reports, writes UNN.
Details
Ukrainian bonds, as indicated, "showed the worst performance among emerging market fixed income indices" on Monday. The price of dollar-denominated sovereign bonds maturing in 2034 fell almost 2 cents to below 53 cents per dollar. Last month, the debt traded at more than 61 cents amid optimism that Trump could quickly resolve the conflict.
Trump said he was "very angry" with Putin for not signing up to a peace agreement backed by the US and Ukraine, threatening "secondary duties" on buyers of Russian oil if Putin refuses the proposed ceasefire, according to comments carried by NBC News.
"It seems to be a combination of several factors - people taking high risk due to an uncertain global background, perhaps a more realistic assessment of the prospects for a peace agreement," said Timothy Ash, senior sovereign strategist for emerging markets at RBC Bluebay.
Addition
The price of Ukrainian bonds rose sharply after Trump's election victory amid growing expectations that the US leader would quickly end the conflict. However, the rally has waned after peaking in early February as investors question what peace deal Ukraine will ultimately get, especially whether the country will continue to receive aid from the US, the publication notes.