Ukraine's dollar bonds slide as hopes for end to war with Russia fade

LONDON, Sept 5 (Reuters) - Ukraine's sovereign dollar bonds slid close to 2 cents on Friday as concerns grew over whether a ceasefire or a peace deal was possible any time soon.

The 2035 and 2036 bonds, whose payout is linked to the country's economic performance, fell the most, shedding roughly 2 cents to bid below 50 cents on the dollar.

The two bonds have been a bellwether for ceasefire hopes, as investors bet that suspending fighting in the nearly four-year-long conflict could boost Ukraine's economic prospects.

They had rallied to just under 60 cents in August on hopes that U.S. President Donald Trump would make progress towards negotiating either a ceasefire or full peace deal during a summit with Russian President Vladimir Putin in Alaska.

But the outcome of the talks fell short of these hopes.

An NBC News report, citing two senior U.S. administration officials, also reported that Trump had grown pessimistic about brokering a ceasefire.

Trump on Friday lamented that Russia, as well as India, appeared "lost" to China after their leaders' meetings this week with Chinese President Xi Jinping.

Still, both bonds remain above their late-July lows, when they bid under 45 cents.