Ad hoc treasury auction places UAH 22 mln in bonds at 27.5% YTM

The Finance Ministry held an unplanned local sovereign bond auction on July 15 and raised UAH 22 mln. The bonds were placed at 27.5% YTM, the highest rate offered in several years. Oleksandr Klymchuk: The auction’s high yield and unplanned nature point to the proceeds being needed to finance a temporary liquidity gap. The state budget foresees the sale of UAH 26 bln in local bonds in 2009. Since the beginning of the year, the Finance Ministry has sold more than UAH 9.5 bln in local sovereign bonds.