Ukraine's international government bonds dropped as much as 3 cents on Wednesday, with Russia and Ukraine accusing each other of launching air attacks just hours after Russian President Vladimir Putin and U.S. President Donald Trump held a phone call to secure a halt on energy targets.
Longer-dated maturities suffered the biggest declines with the 2036 maturity down 2.845 cents to 60.084 cents, a six-week low, Tradeweb data showed.
In their call on Tuesday, Putin declined to endorse a full 30-day ceasefire sought by Trump and previously accepted by Ukraine. Putin said he would agree to a limited pause in attacks on energy infrastructure, which was then accepted by Ukraine's President Volodymyr Zelenskiy.
Zelenskiy said he would speak to Trump on Wednesday and urged the United States to monitor the ceasefire, while France's foreign ministry said overnight attacks on Ukraine "demonstrate the gap between Moscow's words and actions."
Ukrainian debt rose some 40% from October to February on bets that a Trump administration would speed a wind-down of the three-year war, but lack of advances and a raucous Trump-Zelenskiy meeting in the White House stalled the rally in February.
