Yesterday, the Ministry of Finance placed the entire planned volume of UAH bonds, slightly reducing yields on two longer-term securities.
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 44.48/USD, 51.04/EUR; [3] yields on coupon-bearing bonds are effective yields to maturity. Sources: Ministry of Finance of Ukraine, Bloomberg, ICU.
The one-year military bill received insignificant oversubscription, less than 15% above the cap. Bid yields were mostly close to the cut-off rate, which remains at 15.15%, and the weighted average yield decreased by 1bp to 15.13%.
The 22-month military bond saw a 3.4 bid-to-cover ratio. So, out of 33 bids, only 27 were accepted, and some were accepted only partially. The cut-off rate decreased by another 5bp to 15.65%, and the weighted average yield fell by 10bp to 15.6%.
Participants were more focused on three-year notes. Bonds maturing in April 2029 were more than four times oversubscribed and yields also declined. Both the cut-off rate and the weighted average yield slid by 7bp to 16.08%.
Appendix: Yields-to-maturity, repayments
