Ukrainian bonds rise as expectations for peace plan grow - Bloomberg
Kyiv • UNN
Ukraine's dollar-denominated bonds have surged to new highs amid expectations of a plan to end the war. The 2034 bonds exceeded 60 cents on the dollar, bringing the total yield this year to 7.8%.
Ukraine's dollar-denominated bonds have been rising for a fifth day, hitting new highs "amid expectations that details of a deal to end the war will emerge next week," Bloomberg reports, UNN writes.
Details
The country's debt has risen in value across all maturities, with the 2034 bonds surpassing 60 cents on the dollar, the strongest since their issuance last year. Ukraine's dollar-denominated bonds have returned 7.8% overall this year, regularly ranking among the best-performing securities in emerging markets, according to data compiled by Bloomberg.
"U.S. allies expect President Donald Trump's administration to unveil a long-awaited plan to end Russia's war with Ukraine at a conference in Germany next week," Bloomberg reported earlier.
"I think the market will continue to be positive right up until the actual meeting between Trump and Putin," said Timothy Ash, senior emerging market sovereign investment strategist at RBC BlueBay Asset Management.
Ukrainian bonds reportedly returned about 60% last year, as fund managers increased their positions, betting on moves to speed up the end of the war. Trump's envoy, meanwhile, said he would not present the plan publicly in Munich, as the president should do so.
A viable peace would provide "great growth," though there is still a risk of a bad deal "where security is not guaranteed," with grim consequences for Ukraine and Europe, Bluebay's Ash added.
