The Ministry of Finance continues to hold primary auctions to finance the Ukrainian army. Yesterday another UAH6.7bn was raised for the budget.
The same as last week, the MoF offered two issues of bills maturing on 27 April this year and 1 March 2023. While demand for two-month securities was small, only UAH127.5m at face value, demand for the 12-month bills exceeded UAH7.3bn. This is a little less than last week, but there are positive changes as well. If at the previous auction there were only 10 bids, yesterday, the number increased to 31. This means that market participants who are not primary dealers have also joined the purchase of these securities.
Given that a secondary market for this issue of military bills has been opened and there is demand among both non-banks and individuals, we expect that interest in the primary market will remain high and the government will receive additional resources to finance the army and defence needs.