The Ministry of Finance extended its offerings yesterday, adding USD-denominated bills. Budget proceeds amounted to UAH8.4bn (US$223m), more than in the previous two weeks.

The MoF replaced the 10-month paper that had almost UAH16bn (US$423m) outstanding, with new 13-month bills. New bills will have semi-annual coupon payments, and the closest will be next month, providing the budget with a huge premium of UAH0.2bn. Demand for new bills was 20% larger than the cap, so the MoF rejected one bid with a 17% rate and satisfied the rest within the cap at a 16.8% interest rate, the same as last week for 10-month securities.

Demand for 20-month bills doubled compared with the last week to UAH2bn (US$55m), slightly exceeding the cap, providing the state budget with UAH2.1bn (US$56m) of proceeds. Demand has remained mostly unanimous at 17.6% since December 2023, and was satisfied within the cap of UAH2bn (US$55m).


However, three-year "reserve" notes saw little demand, just UAH52m (US$1.4m) at 18.5%, which was fully accepted.FX-denominated bills significantly increased budget proceeds, providing the state budget with US$80m or 36% of yesterday's proceeds. The MoF offered the same paper as it did two weeks ago and sold them at 4.66%, the same interest rate as cut-off rate two weeks ago.

Research team: Taras Kotovych.

See the full report here.

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