Finance Ministry places another UAH 1.7 bln in local bonds

The Finance Ministry reported yesterday that at auctions on April 17 it sold UAH 1.7 bln in local bonds. The government placed UAH 499.4 mln in six-month bonds at 12.5% YTM, UAH 1.2 bln in two three-year bond issues at 15.7% YTM (UAH 702 mln matures on April 4, 2012 and UAH 500 mln matures on April 11, 2012). Interfax-quoted unnamed sources as saying that the resurgence in local bond auction volumes was evidence of the National Bank of Ukraine directing funds from NBU reserves to cover the budget deficit (see our news of November 7, 2008 for more on this mechanism).