Ukraine’s dollar bonds jumped and Eastern European currencies gained amid signs of progress toward a US-backed peace plan that could end nearly four years of fighting. The Ukrainian dollar-denominated bond due in 2029 rose about 3 cents to reach more than 72 cents on the dollar, the highest level since last February. Bonds maturing in or around 2035, issued as part of last year’s restructuring, were also among the biggest gainers in emerging debt markets during Monday’s trading. Cautious optimism about Ukraine supports markets. Although the road to a deal that satisfies the government in Kiev remains fraught with major challenges, any signs of a possible rapprochement are driving investors to turn to Ukrainian assets. This improvement in regional sentiment also affected the assets of neighboring countries. Also read: What is the content of the American-Russian plan to bring peace to Ukraine? “We’ve been through this before, but the pressure of sanctions seems to be opening Russia up more than usual to the idea of ​​peace,” Chris Turner, chief strategist at ING Bank, wrote in a note on Monday. He added: “Expectations to reach an agreement are gradually beginning to be reflected in the performance of currencies.” The gains extend to Eastern Europe. The forint, zloty and krona currencies gained around 0.2% against the euro, while stock indices in Budapest and Prague continued to rise. After significant diplomatic activity over the weekend, Ukrainian and US negotiators began preparing an updated and revised peace framework document, according to a senior adviser to President Volodymyr Zelensky, at a time when Kiev is seeking more favorable terms in a proposal backed by President Donald Trump.