Rates drop for 3M, 6M Ukraine local bonds on primary market

Ukraine’s Finance Ministry succeeded in raising UAH
1.5 bln at its weekly bond auction held on Feb. 13.  All the placed bonds
– with maturity terms of 3M, 6M, 9M, 12M and 24M – found demand on the market.
The interest rates for 3M and 6M bonds, which raised 64% of total auction
receipts, declined to 16.00% and 16.24%, respectively, from 16.50% for both a
week ago. The rate on two-year bonds was 15.79%.

Evgeniya Akhtyrko: The
receipts from this week’s local bond placement fell to UAH 1.5 bln from UAH 5.2
bln one week ago and UAH 7.5 bln two weeks ago. The reduced need for budget
funding allowed the government to reject bids with higher interest rates for
the shortest bonds. The government accepted seven out of twelve bids for
two-year bonds, which brought UAH 264.9 mln, or 18% of total auction receipts.
The weighted-average rate of 15.79% for the floated two-year bonds kept the
local market UAH yield curve inverted.