On Oct. 29 primary auction the MoF received UAH64bn of demand vs UAH63bn a week ago, but proceeds were UAH23.2bn vs UAH25.8bn due to the unbalanced distribution of bids between securities.
Investors focused on 1.5 and 2.5-year UAH military bills, which were 5x oversubscribed. However, demand for 11-month and three-year UAH instruments decreased. The 11-month paper saw demand just 26% larger than the cap, while for the three-year note, demand fell by two-thirds and was just about 10% of the cap. USD-denominated bills were not oversubscribed either. Therefore, interest rates remained unchanged.
Now, the three-week break in reserve bonds offering is ending. However, there is no updated information that the MoF will renew their offering next week or postpone this decision due to significant demand for military instruments.
