UPDATE 1-Ukraine's bonds rally in first trading after Trump inauguration

Adds quote, Zelenskiy Davos appearance, updates prices

By Libby George

LONDON, Jan 21 (Reuters) - Ukraine's government bonds rallied more than 1 cent and its GDP warrant gained 1.5 cents in the first trading after U.S. President Donald Trump's inauguration.

Tradeweb data showed Ukraine's 2029-maturing bond gained 1.33 cents on Tuesday to be bid at 69.49 cents on the dollar in European trading.

The country's bond-like 'GDP warrants', whose payments are directly linked to its rate of economic growth, climbed to 81.94 cents, their highest since January 2022.

Kaan Nazli, a portfolio manager with Neuberger Berman, said the gains were likely driven by expectations of a possible ceasefire agreement - as well as more cautious comments from Trump's incoming Ukraine policy team.

"They have all pledged more support to Ukraine and threatened more sanctions on Russia," Nazli said. "Trump himself spoke about a 6-month process. This might have diluted some fears that Ukraine would be abandoned."

Ukraine's bonds have rallied since Trump's election in November, due to optimism that he could negotiate an end the near three-year long war with Russia.

Ukrainian President Volodymyr Zelenskiy is scheduled to address global leaders at the World Economic Forum in Davos later on Tuesday.

(Reporting By Libby George; editing by Marc Jones and Ros Russell)

((Libby.George@thomsonreuters.com; +44 07527 061331; Reuters Messaging: libby.george@thomsonreuters.com))