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At yesterday's primary auction, the MoF accepted all bids.
Demand for 14-month military bills sharply rose, probably because they were the only military paper offered at the primary bond auction. The MoF received 27 bids for UAH2.8bn and accepted them without changes in interest rates.
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 41.55/USD, 45.32/EUR; [3] yields on coupon-bearing bonds are effective yields to maturity.
Sources: Ministry of Finance of Ukraine, Bloomberg, ICU.
1.8-year regular bills saw the usual demand, slightly above UAH1bn with rates ranging within 17-17.1%. Therefore, the MoF accepted all bids.
Just a three-year note was oversubscribed. Bids were within 17.7-17.8%, and the MoF accepted all of them.
Finally, the state budget received UAH9bn. We don’t expect that interest rates will see material changes soon.
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