US president Donald Trump and Ukraine premier Volodymyr Zelenskyy’s war of words have hit Ukraine’s government bonds.
The value of the important economic bellwether are falling amid rising tensions between Washington DC and Kyiv.
Reuters reported that the country’s GDP warrant shed 2 cents, to be bid at 81.05 cents, while the 2035 maturity bond lost 2.4 cents to be bid at 63 cents.
The selloff comes after Donald Trump called Volodymyr Zelenskyy a “dictator”, after the Ukrainian president said Trump lives in a ‘disinformation bubble’.
Trump wrote: “A Dictator without Elections, Zelenskyy better move fast or he is not going to have a Country left.”
Speaking in Kyiv, Zelenskyy, lambasted Trump for pushing “a lot of disinformation coming from Russia”.
Jim Reid, strategist at Deutsche Bank, said: “That followed a social media post from President Trump that was highly critical of Ukrainian President Zelenskiy, referring to him as “a dictator without elections”.
“This followed President Zelenskyy’s comments earlier in the day that US proposals on Ukrainian minerals were “not a serious conversation”. So that backdrop led to a renewed underperformance for regional assets, including Ukraine dollar bonds and CEE currencies.”
