Primary UAH sovereign debt auction volumes drop 50%

Yesterday the Finance Ministry held a regular UAH debt auction, attracting UAH 167.6 mln, almost 50% less than a week ago, while total demand shrank by 18%. Mykyta Mykhaylychenko: After attracting USD 1.5 bln via a Eurobonds placement last week, the government can afford smaller placement volumes on the local market. More than half of yesterday’s placement came from 8M papers at an average YTM of 7.8% (8% two weeks ago), while the rest was attracted through 6M bonds at an average 6.75% YTM (6.7% two weeks ago). Indicatively, bids for 1.8Y papers came in the 10%-10.15% YTM range, and for 2.9Y – 11%.