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Ukraine’s bonds continued to move lower by 1 points across the curve following President Donald Trump’s criticism of Ukraine’s government and his attempts to strengthen ties with Russia. Trump’s remarks, which labeled Ukraine’s president a “dictator,” shattered expectations of a smooth peace process, causing a selloff in Eastern European currencies and a reversal in stocks. While the region had previously benefited from hopes of a peace deal, Trump’s actions raised doubts about the stability of any potential peace, especially for Ukraine. The geopolitical tensions, combined with Trump’s actions, have made investors cautious on the certainty of the region’s long-term stability. Ukrainian stocks, which had surged 83% year-to-date, dropped 15% in just two days. Ukraine’s dollar bonds, which had seen strong returns in 2024, also reversed course.
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