Yesterday, investor interest continued to shift toward ordinary (non-military) bills. Unfortunately, the total volume of demand and borrowing decreased again and is very close to the minimum.
After attracting a considerable amount of funds for five-month paper last week, yesterday, the total demand for this instrument fell to UAH22.7m (par value). Demand for 11-month military bills hardly changed. But demand for ordinary (non-military) securities more than tripled.
Interest rates for all five offered bills remained unchanged: 13.5% for the 5-month and 14% for the 11-month military bills, and 18.5% for all three ordinary bills with maturities ranging from 15 months to two years.
Demand is gradually shifting to ordinary bonds, which the Ministry has been offering every week. But interest rates on them give YTM lower than similar instruments traded on the secondary market, so primary placements attract only a small number of investors.
Also, this auction demonstrated that last week's repayments have already been reinvested on the secondary market in other bonds or spent on purchases of hard currency or for other purposes. But not for purchasing bills on the primary market under current conditions.
