Demand dropped by nearly double since last week, but, unexpectedly, the interest rates submitted were acceptable for the Ministry of Finance. As a result, all bids for all offered bills were accepted in full.
The shortest bill had a four-month maturity, but despite this, demand for it was only slightly below that for last week’s two-month bills. Interest rates were in the range of 19-19.5%, and Ministry accepted all 17 bids. Other short-term local-currency bills received lower demand than last week, and they were also accepted. Low demand was for the 1.5-year bills, despite this being the first time this maturity was offered in 2019.
FX-denominated bills received low demand also. After a large redemption of FX-denominated bills at the end of January, proceeds in FX are low, although they rose slightly yesterday. At this auction, four issues were sold with maturities from two months and up to two years.
In total after this auction, the budget received about UAH3.5bn, including proceeds in FX at the current exchange rate, and all of this week’s debt repayments were covered. At the same time, nearly 90% of repayments are made to the NBU, and most of the bills sold yesterday are new investments from the market, not the refinancing of payments.