Yesterday, the MoF accepted all bids without changes in yields, borrowing the lowest amount of funds in more than two years.
The shortest of offered bonds, 16-month UAH military bills, received 15 bids amounting to UAH96.5m with interest rates not higher than last week's cut-off rate. Therefore, the MoF accepted all bids in full, maintaining the cut-off rate at 15.85% and decreasing the weighted average rate by 3bp to 15.81%.
The placement of 2.4-year bonds was similar. The MoF received 21 bids amounting to UAH149.1m with rates ranging from 16.9% to 16.95% and accepted them in full. The cut-off rate remains unchanged at 16.95%, and the weighted average rate rose 4bp to 16.94%.
Finally, the MoF borrowed only UAH249.4m, the lowest amount since November 2022, when it ended its pause in rate increases after the NBU increased the cut-off rate sharply to 25%.
However, the MoF was in no hurry to borrow more. The MoF announced today's debut auction for bond exchange, which will offer to exchange bonds maturing next week in new two-year bills launched last week and to decrease the need for funds for redemptions next week.