Ukraine’s Dollar Bonds End Longest Losing Streak Since April

Ukraine’s government bonds climbed for the first time in six days, ending the longest run of losses since April.

The yield on Ukraine’s dollar-denominated debt due July 2017 fell six basis points to 10.12 percent at 4.34 p.m. in Kiev, after rising 69 basis points yesterday. Ukraine’s currency, the hryvnia, weakened for a fifth day, falling 0.2 percent to 11.94 per dollar.

Ukraine said today it is sending a delegation for talks with European Union officials to negotiate natural gas supplies after Russia cut off deliveries overnight. Russia has deployed four battalions to boost security on its border with Ukraine, Vedomosti reported, citing an unidentified person with knowledge of military movements.

While the fighting continues, the risk of separation of two of Ukraine’s eastern regions from the rest of the country is diminishing, according to Vadim Khramov, an analyst at Bank of America Corp. The International Monetary Fund reached a preliminary deal with Ukraine on March 27 and agreed a two-year loan of $17 billion on April 30.

“The crisis is becoming more and more localized,” Khramov said by phone from London. “In this case the IMF program is likely to continue without substantial changes.”

To contact the reporter on this story: Natasha Doff in London at ndoff@bloomberg.net

To contact the editors responsible for this story: Daliah Merzaban at dmerzaban@bloomberg.net Gavin Serkin, Chris Kirkham

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