Ukraine Debt Payment Tests Talks Progress as Market Bets on Deal

If you want some clues to how negotiations are progressing between Ukraine and its creditors, pay attention this Friday when a $120 million interest payment comes due.

With Ukraine threatening as recently as last week to halt bond payments if progress wasn’t made toward a restructuring deal, investors will be watching for the cash to arrive as a sign that talks, which began in earnest a week ago, are still on track. The nation’s Eurobonds, which have rallied 6.3 cents this month, suggest the market believes they are.