At yesterday's auction, almost UAH7.7bn (US$262m) was raised for the budget. The vast majority of funds were raised through FX-denominated bills, which brought the budget US$220m (UAH6.5bn) or 85% of all funds raised.
UAH securities are usually for June not in great demand. Yesterday, bills maturing in September received almost UAH1.2bn (US$39m) of demand, while bids for longer maturities totalled only UAH54m (US$1.8m). All military bills were sold at the usual interest rates of 9.5‒11.5%, which were set by the MoF at the beginning of the full-scale russian invasion.
The offer of USD-denominated bills helped MoF improve borrowings and replenish FX reserves before tomorrow's US$0.5bn of redemptions. Although the number of bids was minor, the budget received US$222m from six and 12-month FX-denominated bills. Interest rates on them remained unchanged and were set at 3.5% and 3.7%, respectively.
Although the UAH military bills brought slightly more funds to the budget than in previous weeks, the total amount of borrowings through this instrument remains low. In March and May, the budget attracted UAH29bn (US$1bn) per month through military bills; in April MoF was able to borrow UAH20bn (US$0.7bn). But in June, just UAH2.3bn (US$79m) was borrowed through this instrument. This month, an additional UAH3.5bn (US$120m) was raised through non-military bonds, which are not admitted for trading on the secondary market. This will lead to fewer borrowings in June than in April.
