Ukraine's bonds rose sharply on expectations that a democratic victory would help bolster the country's defense capabilities. Bloomberg. Ukraine's dollar bonds jumped on speculation that a landslide Democratic victory in midterm elections would improve relations between Kiev and Washington, and help protect the war-torn country. Ukrainian bonds yielding 4.5% and due in 2034 rose more than a cent to the dollar, topping 63 cents and hitting their highest level in more than a month. Treasury bonds were among the top gainers in emerging markets on Wednesday as investors reacted to the major defeat of President Trump's Republican Party. "Recent news has been negative following attacks on Ukraine's energy infrastructure," said Victor Sabo, chief investment officer at Aberdeen Investments. "The market now expects the new Congress to be able to prevent disruptions in intelligence sharing with Ukraine or restrictions on access to the Star Shield system." Of course, it is far from clear how Trump's views on the conflict in Ukraine will change after the election, even if the result reduces his ability to put pressure on Zelensky. The US president may feel more confident asserting his authority on foreign policy as the Democrat-controlled Congress seeks to limit his influence at home, said Neil Shearing, chief economist at Capital Economics. "Trump can try to quickly end the war on terms more favorable to Moscow," Shearing said. If successful, it would increase pressure on Europe to further increase defense spending and "take more responsibility" for the continent's security, he added.

Ukraine's bonds rose sharply on expectations that a democratic victory would help bolster the country's defense capabilities. Bloomberg. Ukraine's dollar bonds jumped on speculation that a landslide Democratic victory in midterm elections would improve relations between Kiev and Washington, and help protect the war-torn country. Ukrainian bonds yielding 4.5% and due in 2034 rose more than a cent to the dollar, topping 63 cents and hitting their highest level in more than a month. Treasury bonds were among the top gainers in emerging markets on Wednesday as investors reacted to the major defeat of President Trump's Republican Party. "Recent news has been negative following attacks on Ukraine's energy infrastructure," said Victor Sabo, chief investment officer at Aberdeen Investments. "The market now expects the new Congress to be able to prevent disruptions in intelligence sharing with Ukraine or restrictions on access to the Star Shield system." Of course, it is far from clear how Trump's views on the conflict in Ukraine will change after the election, even if the result reduces his ability to put pressure on Zelensky. The US president may feel more confident asserting his authority on foreign policy as the Democrat-controlled Congress seeks to limit his influence at home, said Neil Shearing, chief economist at Capital Economics. "Trump can try to quickly end the war on terms more favorable to Moscow," Shearing said. If successful, it would increase pressure on Europe to further increase defense spending and "take more responsibility" for the continent's security, he added.