Ukrainian Bonds Hit Monthly High on Hopes of Ceasefire
Ukrainian bonds showed their biggest monthly jump after US President Donald Trump called on Russian leader Vladimir Putin to end the war against Ukraine as soon as possible.
The Gaze writes on it, referring to Bloomberg.
During his visit to Scotland, US President Trump announced that he was cutting the deadline for a ceasefire agreement with Russia to 10–12 days, sparking rumors of a possible truce and a rise in Ukrainian bond prices.
“Trump’s statements might support expectations for a ceasefire, which was largely priced out,” said Kaan Nazli, a senior economist and portfolio manager at Neuberger Berman Europe Ltd. “We expect the war to continue, unfortunately at least into 2026, but absent a breakthrough for Russia we see the risk-reward as positive for the bonds.”
Ukraine's sovereign dollar bonds maturing in 2035 and 2036 rose by almost 1.5 cents. On Monday, Ukraine ranked sixth out of eight leaders among emerging market bonds.
After Trump's election victory, Ukrainian dollar bonds rose on expectations of peace. Still, due to the stalemate in negotiations, they have fallen 12% since the beginning of the year — the worst performance among emerging markets, according to Bloomberg.
Jefferies strategist Durukal Gan noted that there may now be a tactical opportunity to buy due to weak positioning and attractive prices.
As The Gaze reported earlier, the Russian stock market suffered a sharp decline after US President Donald Trump announced that he was shortening the deadline for Vladimir Putin to immediately stop the war.