Demand for military bills in the fourth auction improved and provided the budget with more than UAH6bn.
There was a slight decline in demand in the second and third auctions, but this seems to have been situational due to the active participation of banks in the debut auction, backed by a desire to help defend the country from russian aggression. Yesterday, demand for bills increased slightly compared with last week, and the number of bids slid by only seven to 47.
In the structure of demand, investors' interest in paper maturing on 27 April this year increased, which may be because banks are using this instrument instead of two-week certificates of deposit, which the NBU has not issued since early March.
Therefore, due to an increase in demand for the shortest paper, total demand at the auction increased by more than UAH600m to UAH6.6bn (par value). Demand for 11-month bills was stable, and again amounted to almost UAH5.4bn.
Demand from domestic investors is steady, and even shows an increase. Therefore, we expect that going forward, the government will be able to borrow a similar amount of money every week.