LONDON, Aug 8 (Reuters) - Ukraine's sovereign dollar

bonds rallied on Friday after a report that the United States

and Russia were aiming to reach a truce deal that would lock in

Moscow's occupation of territory seized during its military

invasion of Ukraine.

The zero-coupon 2035 maturity gained the most, adding just

over 3 cents to bid above 55 cents on the dollar, its highest

since May, Tradeweb data showed.

Bloomberg reported that Washington and Moscow were aiming to

reach a deal to halt the war in Ukraine in advance of a planned

summit between U.S. President Donald Trump and his Russian

counterpart Vladimir Putin as early as next week.

The White House dismissed the report as speculation. A

Kremlin spokesperson did not immediately respond to a request

for comment. There was no immediate comment from Ukraine.

Reuters could not immediately verify the details included in

the Bloomberg report.

Ukraine and the European Union have previously pushed back

on ceasefire or peace deals that they view as ceding too much to

Putin, whose troops invaded Ukraine in February 2022, citing

what Moscow called threats to its security. Kyiv and its Western

allies cast the invasion as an imperial-style land grab.