Ukraine sovereign dollar bonds rise to three-week highs

LONDON: Ukraine sovereign dollar bonds rallied between 1-1.75 cents on Thursday after a group of creditors said it was working on a proposal that would allow Ukraine to resolve its debt problems without cutting bonds' principal.

Ukraine's 2017 issue rose one cent to three-week highs around 43 cents, according to Tradeweb data, while the 2023 bond jumped 1.75 cents to 44.5 cents .

Ukraine's bond yield spread over US Treasuries narrowed 66 basis points to 3,709 bps.

The bonds have been swept along in this week's broader rally in emerging debt, but a trader said a fresh catalyst was the creation of a creditors' committee which said it would propose a solution to Kiev's debt problems, without requiring a writedown on the bonds' principal.