Yesterday, the Ministry of Finance raised almost UAH23bn (US$627m), lowering rates on all UAH-denominated instruments.

Demand for 12-month bills increased almost fourfold, to UAH3.9bn, exceeding the cap, but it was mainly in non-competitive bids. Interest rates in competitive bids were mostly lower than last week, although the maximum was the same—17.53%. Using the cap, the Ministry of Finance satisfied 9 out of 12 bids, setting the cut-off rate at 17.3% and the weighted average rate at 17.27%, 23bp and 26bp lower than last week. Almost all accepted demand was in non-competitive bids, and only UAH124m was competitive.

The greatest demand was for new military paper maturing in July 2025. It attracted more than UAH8.8bn in 31 bids, including a third in non-competitive bids. Therefore, within the cap, the Ministry of Finance accepted only part of the competitive bids and non-competitive demand (UAH2.9bn), setting the cut-off and weighted average rates at 18.15%, 20bp lower than last week.

Interest rates for "reserve" notes also decreased yesterday, the cut-off rate by 19bp and the weighted average by 18bp, to 19%. However, to set new interest rates, the Ministry of Finance sold less than planned, UAH4.7bn, and again, mainly through non-competitive bids which amounted to UAH3.3bn.

Only the cut-off rate for USD-denominated bills remained unchanged. The Ministry of Finance has placed all the planned US$300m, including US$62m, under non-competitive bids, attracting US$286m to the budget. However, the weighted average rate increased by 1bp to 4.79% compared with the auction two weeks ago.

Russian Agent in Odesa Posing as Parliamentary Candidate Arrested
Similar topics of Interest

Russian Agent in Odesa Posing as Parliamentary Candidate Arrested

The agent has been passing intel on Ukrainian targets to Russia and began a Russian-funded political campaign attempting to infiltrate Ukraine’s parliament.

The Ministry of Finance satisfied only 62% of demand for UAH government bonds and was able to sharply decrease interest rates. The high demand may have resulted from expectations of a further decrease in the NBU discount rate this Thursday and interest rates for NBU CDs.

Research team: Taras Kotovych.

See the full report here.

To suggest a correction or clarification, write to us here
You can also highlight the text and press Ctrl + Enter

Comments (0)

https://www.kyivpost.com/assets/images/author.png
Write the first comment for this!