Aug 26 (Reuters) - Ukraine's sovereign dollar bonds fell

further on Tuesday, hitting a more than two-week low, as

optimism over a peace deal continued to fade.

The war-torn country's debt has slowly shed some of the

gains it made earlier this summer on hopes that an August 15

meeting between U.S. President Donald Trump and Russian

President Vladimir Putin could yield a peace deal.

The 2035 and 2036 maturities, which have no coupons but pay

more if the country's economy outperforms, fell the most, with

the latter shedding 1.7 cents to bid at 52.55 cents on the

dollar, below the 59.50 peak hit on August 20.

"We see continued downward correction in bonds, as the news

flow has not been supportive lately," Aberdeen portfolio manager

Viktor Szabo said.

Szabo added that the bonds linked to economic performance

were more sensitive to Ukraine's outlook, and had also

outperformed in the run-up to the Trump-Putin meeting.