Finance Ministry cancels yesterday’s primary bond auction

The Finance Ministry cancelled a primary local UAH sovereign bond auction scheduled for yesterday due to a lack of market bids; it planned to offer four series with maturities in 6M, 1Y, 3Y and 5Y, it said in an announcement. All bids were concentrated in 1Y papers, but the Finance Ministry refused to accept the proposed yields of 11.00-11.25%. Total market demand yesterday was just UAH 31.0 mln. Svetlana Rekrut: Yesterday’s auction was just the latest abortive auctions by the Finance Ministry in the last couple of weeks. We expect this trend to continue given the government’s low need to raise additional capital on via local fixed income instruments due to solid fiscal outperformance in 8M11.