Ukrainian dollar bonds fell to their lowest in four months after US President Donald Trump slammed Vladimir Putin, dampening hopes for a quick end to the conflict, Bloomberg reported on March 31.
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Fall amid pessimism
Among emerging markets, Ukrainian securities have been the worst performers, with the 2034 sovereign bond shedding nearly 2 cents to below 53 cents on the dollar. Just a month ago, it was trading above 61 cents, fueled by expectations of a possible peace.
Trump vs Putin
Trump expressed his displeasure, saying he was “extremely annoyed” by Putin’s refusal to support a peace plan proposed by the U.S. and Ukraine. He also warned of “additional tariffs” on countries that buy Russian oil unless the Kremlin makes concessions to end the fighting.
Pressure factors
Experts attribute the decline in bonds to several reasons: investors are avoiding risks due to global uncertainty and are becoming increasingly sober about the prospects for a peaceful settlement. This situation reflects a decline in faith in a quick resolution of the conflict and increased caution in financial markets.
- Bonds