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Last week's increase in UAH bond interest rates boosted demand for primary placements, allowing the MoF to double proceeds from UAH military bills.
The greatest demand was for 15-month bills in 55 bids, which amounted to over UAH9.5bn. Most bids had yields not higher than 16.35%, which was last week's cut-off rate. Therefore, the MoF rejected six bids and partially satisfied some bids. The cut-off rate remained unchanged, while the weighted-average rate rose by 4bp to 16.35%.
Demand for 2.3-year military bills was slightly above UAH5bn, but some bids required yield increases, which the MoF rejected. Therefore, the MoF borrowed UAH3.4bn without changes in the cut-off rate. The weighted-average rate rose by 1bp to 17.45%.
Additionally, the MoF offered EUR200m of 13-month bills. This offering received EUR189.5m of demand, whereas just one bid for EUR0.5m required a rate increase. The MoF satisfied all bids with up to a yield of 3.25% and set the weighted-average rate at 3.24%.
The state budget received over UAH17bn of proceeds, including half in hard currency.
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