LONDON, April 10 Ukraine's dollar debt rose on
Thursday and its debt insurance costs fell on easing tensions
over eastern Ukraine and support from the country's largest
Pro-Russian separatists are holding buildings in the eastern
cities of Lugansk and Donetsk, which Kiev has said could provide
a pretext for a Russian invasion.
Ukraine will not prosecute pro-Russian separatists if they
leave government buildings they have occupied and give up their
weapons, acting President Oleksander Turchinov said on Thursday.
"We had some spikes in volatility on the situation in
eastern Ukraine at the weekend, but that has not escalated
further," said Andrei Andrijanovs, strategist at frontier
markets broker Exotix.
Ukrainian bonds found further support from Templeton Global
Bond Fund manager Michael Hasenstab, the biggest international
investor in Ukrainian debt.
Hasenstab said on Wednesday in a video recorded last weekend
in Kiev that he was confident the country could flourish over
the next decade.
Ukraine's dollar bonds maturing 2017 and 2020
rose 1 point from Wednesday's close, according to
Ukraine state energy firm Naftogaz' dollar bond due Sept
2014 rose 1 point to 93.25, and Ukraine's
five-year credit default swaps fell 25 basis points from early
Thursday levels to 983 bps according to Markit.
(Reporting by Carolyn Cohn and Natsuko Waki)