You're reading: Finance Ministry cuts rates on government domestic loan bonds in hryvnia

The Finance Ministry of Ukraine at its primary auctions on July 16 for the fourth week in a row managed to lower the cut-off rate: for three-month hryvnia-denominated securities from 17.24 percent to 17 percent, for six months from 17.6 percent to 17.4 percent, for 12 months from 18 percent to 17.74 percent, and for two-year bonds from 17.95 percent to 17.75 percent per annum.

According to the results of the auctions on the website of the ministry, to reduce the rates on securities up to one year inclusive, the ministry sacrificed the demand of Hr 2.62 billion, limiting the supply of three- and six-month securities to Hr 500 million, for 12-month securities to Hr 1 billion.

The demand for three-month government domestic loan bonds reached Hr 1.27 billion, six-month securities Hr 1.012 billion, and 12-month bonds some Hr 2.32 billion. As a result, on the eve of the reduction of the refinancing rate by the National Bank from the current 17.5 percent per annum expected by the market participants, the seller managed to lower the average weighted placement rates: for three-month securities from 17.24 percent to 16.96 percent, for six-month securities from 17.47 percent to 17.21 percent, and for 12-month bonds from 17.99 percent to 17.68 percent per annum.