Ukrainian bonds rise on hopes for a Trump peace plan.

According to Bloomberg, Ukrainian dollar bonds have increased for five consecutive days, reaching new records as investors show optimism about a potential peace settlement.

Specifically, bonds maturing in 2034 have surpassed 60 cents per $1, the highest level since their issuance in 2023. The yield on Ukrainian bonds this year was 7.8%, making them one of the most lucrative options among emerging markets. Over the past month, Ukrainian bonds maturing in 2036 have risen from 44 to 49 cents per $1, with GDP warrants witnessing even more significant increases.

State energy company Ukrenergo bonds have surged more than 160% to 67 cents per $1 despite continued Russian attacks on energy infrastructure. Ukraine’s bonds have jumped about 60% in the past year as investors wager on measures that could help resolve the war.

The US is anticipated to announce a plan soon that will outline a path to ending Russia’s war against Ukraine. Possible scenarios involve freezing the conflict, offering Ukraine security guarantees, and potentially facilitating elections in Ukraine after a ceasefire.