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The Ministry of Finance rejected almost half of demand at yesterday's auction, refusing a slight increase in the yield on the three-year note.
Demand for 14-month securities almost halved WoW to UAH289m. Unlike last week, all 24 bids were with rates no higher than 15.15%. Therefore, the cut-off rate and the weighted average yield remained at 15.15% and 15.14%, respectively.
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.
At the same time, interest in bonds maturing at the end of April 2029 increased more than tenfold compared with the auction at the end of April, when the MoF offered this paper last time. However, among 23 bids, one was for UAH500m at a rate of 16.2%, 5bp above the cut-off rate of the previous auction, while most had yields of 16% to 16.15%. The MoF decided to reject the bid requiring an increase in yield and sold only UAH337m of bonds.
Appendix: Yields-to-maturity, repayments
