Finance Ministry attracts UAH 63 mln, 82% less than last week

Yesterday the Finance Ministry held a regular primary UAH sovereign debt auction. The sale raised UAH 62.9 mln (USD 7.9 mln), a decrease of 81.9% from the previous week’s auction. Mykyta Mykhaylychenko: Some 62% of the proceeds came from the sale of 6M bonds at a 7.15% average yield (down from 9% two weeks ago), while 37% of the total amount came from 1Y bonds at 9% vs. 10.9% at an auction two weeks ago. After the successful placement of USD 2 bln in Eurobonds earlier this month, the government can afford to refrain from selling at bids with higher yields. At this auction, MinFin accepted only one to two bids for every bond issue. Hence, we see actual market rates at somewhat higher levels.