Investor activity strong

Yesterday, the Ministry of Finance raised UAH6.2bn (US$209m) for the budget at the primary bond auction. There was strong turnout for local-currency bills. More than 70 bids were submitted to the auction, and they were fully satisfied.

After the relatively low interest in the UAH-denominated bills offering last week with demand concentrated for bills denominated in euro, this week, the Ministry of Finance did not offer FX-denominated bills, but still was able to raise the usual UAH6bn (US$200m) per week.

The main part of demand was for 15-month paper, amounting to almost UAH4.6bn (US$160m) in 22 bids, where a third of the volume was non-competitive bids. Demand for seven-month securities was mostly non-competitive and was in 51 bids. Only UAH6.1m (US$0.2m) of bills were sold for competitive demand, which could have been in one or only a few bids.

Interest in military bills remains high, and given the unchanged rates, auction participants use the option of non-competitive bidding without the risk of receiving a different rate from other investors. Once again, the budget received an average of over UAH6bn (US$200m) per week, which includes investments by banks, non-banking institutions, and individuals.

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Official results on issuance of domestic bonds