The MoF borrowed UAH1.5bn (US$42m) on Tuesday, a four-fold decrease compared with last week and approximately one-tenth of what was raised at this year's first primary auction. However, this week, was the first auction without a FX-denominated bond offering this year.

Ten-month bills received demand for a total of UAH535m (US$12.4m) at par value, which is significantly more than last week (UAH329m). Meanwhile, the demand for bonds maturing in October 2025 has almost halved to UAH879m (US$24.4m). The demand for three-year "reserve" notes was again the smallest, falling to UAH167m (US$4.4m) from UAH263m (US$6.5m) last week. Bid rates were mostly unanimous again, so the cut-off and weighted average rates remain unchanged from last week.

In general, this year, the MoF has mainly borrowed in foreign currency, so without offering FX-denominated bills this week, it got the expected result, and compared with last week, borrowing in hryvnia decreased by about a third.


There are no redemptions this week, and in January, the Ministry raised twice as much as it has paid in principal repayments, so there is no urgency to borrow to refinance repayments. Also, a small redemption—only UAH2.5bn—is scheduled for the next week. Therefore, if the budget does not require extra funds for current needs, the Ministry of Finance may not change its current plans of which instruments it will offer. Therefore, the MoF may not offer FX-denominated government bonds until the second half of February.

Research team: Taras Kotovych.

See the full report here.

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