Finance Ministry attracts UAH 0.285 bln in local debt refusing to up yields

Yesterday, at a scheduled UAH debt auction, the Finance Ministry attracted UAH 285.0 mln after it failed to place any new debt at an auction last week. The government offered four series of bonds with 6M, 1Y, 3Y and 5Y maturities. The overall bid volume rose by 65% compared to last auction last week to UAH 1.3 bln, while the Finance Ministry accepted only 2 bids for 3Y papers with the lowest yield of 10.1%. Svetlana Rekrut: Yesterday’s auction just prior today’s sovereign bond  redemption at UAH 1.37 bln of face value is evidence of the Finance Ministry’s unwillingness to borrow at a higher price as the government has a sufficient cash position to cover its needs through next two months, while seeking to maintain previous low yields.