On July 28, US leader Donald Trump announced that he was reducing the deadline for Russia to end the war from 50 to 10-12 days. This high-profile statement caused Ukrainian dollar bonds to rise by 1.5 cents.
Points of attention
- Despite the recent price increase, Ukrainian debt securities have faced challenges, including a significant decline since the beginning of the year.
- Analysts suggest that the current market conditions provide an opportunity for tactical buying due to attractive valuations and low positioning.
Ukrainian bonds reacted quickly to Trump's decision
Analysts drew attention to the fact that the price increase occurred for bonds maturing in 2035 and 2036.
What is important to understand is that on July 28, 6 of the 8 most profitable debt instruments in emerging markets belonged to Ukraine.
During his visit to Scotland, the head of the White House unexpectedly announced that he was giving Russian dictator Vladimir Putin only 10-12 days to reach a ceasefire.
Such a sharp change in the deadline for the Kremlin sparked expectations of potential peace talks and became a driver for the market.
However, we cannot ignore the fact that Ukrainian debt securities have fallen in price by 12% since the beginning of the year.
According to analysts, this is the worst performance among emerging markets.
Experts also forecast that a tactical buying opportunity may appear on the market due to attractive valuations and low positioning.
