The Ministry of Finance raised approximately UAH19.4bn from yesterday's primary auction. All redemptions will take place this year.
For the third consecutive week, the Ministry sold a large amount of short-term bills that mature this year. During the previous two weeks, the MoF sold UAH15.8bn of bills that mature in August. Yesterday, UAH13.4bn of bills sold had a maturity at the end of July and UAH6.4bn mature at the end of November.
For three-month paper, interest rates remained unchanged: an 11.3% cut-off level and an 11.26% weighted-average rate.
There was a large increase in rates for the six-month bills compared with the pre-lockdown auctions. However, this increase was less significant than for the three-month paper sold two weeks ago. For three-month paper, the cut-off rate was set two weeks ago at 11.3%, up 190bp compared with the pre-lockdown auction. For six-month bills, the cut-off rate was up 128bp and the weighted-average rate rose by 138bp. Both rates for six-month bills were set at 11.28%, very close to the three month. The cut-off rate was 2bp below the same rate for three-month bills, while the weighted-average rate was 2bp above the rate for three-month paper.
The budget brought in a considerable amount of funds, which solved the current problems with the Treasury account balance. But globally, 2H20 becomes with a larger debt burden and financing needs, requiring more attention from the Ministry to attract different investors.
