Foreigners’ UAH sovereign bond holdings declines 22.4% in August on redemptions

Non-residents reduced their holdings of UAH sovereign bonds by 22.4% m-o-m in August to UAH 6.9 bln, the largest m-o-m decline this year, Interfax reported yesterday. The share of non-resident holdings of all UAH bonds in circulation dropped by 1.1% m-o-m to 4.6% in August. Svetlana Rekrut: We attribute the decline in non-residents holdings of UAH sovereign bonds to scheduled August redemptions of 6M and 1Y papers. The Finance Ministry failed to rollover its debt (for more details, please see our news from August 30), which led the total bonds in circulation to fall by 1.9% m-o-m or UAH 2.9 bln in August.