LONDON, Nov 26 (Reuters) - Ukraine’s dollar-denominated sovereign bonds extended their fall on Monday while the cost of insuring exposure to Russia’s sovereign debt jumped amid heightening tensions between the two countries.
Ukraine’s external debt fell across the curve, with the bond maturing in 2025 dropping 2.25 cents to 87.2 cents, levels last seen around Russia’s annexation of Crimea in March 2014, according to data from Refinitiv.
Meanwhile, Russia’s sovereign hard-currency debt also came under pressure and five-year credit default swaps rose to a 2-1/2 month high of 172 basis points, an increase of 9 bps from Friday’s close, according to data from HIS Markit.
On Sunday, Russia seized three Ukrainian naval ships off the coast of Crimea after opening fire on them and wounding several sailors in a move that risks igniting a dangerous new crisis between the two countries. (Reporting by Karin Strohecker Editing by Jamie McGeever)