Yesterday, the Ministry of Finance again offered 1.9-year military paper, and it received the vast majority of demand.
Note: [1] payment frequency abbreviations: M - monthly, Qtly - quarterly, SA - semi-annually, @Mty - at maturity date; [2] proceeds and volumes for the USD-denominated bonds are calculated based on the previous day's exchange rate 43.95/USD, 51.44/EUR; [3] yields on coupon-bearing bonds are effective yields to maturity. Sources: Ministry of Finance of Ukraine, Bloomberg, ICU.
Demand for the 1.4-year military issue rose slightly WoW to UAH1.1bn. Although, unlike the previous auction, one bid was with a slightly higher yield level – 15.18%, but for only UAH5m. So, the MoF satisfied 12 of 13 bids, keeping the cut-off and weighted-average rates unchanged at 15.15%.
At the same time, total demand for two-year military paper declined slightly to UAH4bn. The offer of UAH2bn worth of bonds was exhausted at a yield of 15.84%, so the ministry set the cut-off rate at this level, potentially satisfying some bids partially. The MoF also set the weighted-average rate at 15.84%, at which it satisfied all non-competitive demand.
Appendix: Yields-to-maturity, repayments
