Yesterday, the Ministry of Finance borrowed UAH15.1bn, with more than half in foreign currency. Rates for all bonds remained stable as the NBU’s macro forecast is pending revision.
The Ministry reopened one-year bills from last year, receiving UAH4.2bn in bids. Two competitive bids with rates higher than 14.74% were rejected, but all non-competitive demand was met. Only UAH3.6bn of bills were sold, bringing in almost UAH4bn to the budget. The cut-off and weighted average rates were adjusted to 14.74% and 14.71%, respectively.
The two-year paper saw minimal demand at UAH310m, below the UAH4bn cap. All bids were accepted with a cut-off rate of 15.4% and a weighted average rate of 15.32%.
Demand for 3.7-year notes reached UAH2.4bn, with rates similar to the previous auction. Placement conditions remained unchanged, with cut-off and weighted average rates at 16.8%.
Investors focused on USD-denominated bills, accounting for nearly 2/3 of total demand. These bills brought in over half of the budget proceeds, with a cut-off rate of 4.66% and a slight decrease in the weighted average rate.
Overall, interest in UAH bonds continues to decline for the second week, pending new macro forecasts from the NBU in July. However, upcoming repayments and redemptions may stimulate activity in the bond market.