At Feb. 18 primary auction the MoF accepted all bids without changes in yields, borrowing the lowest amount of funds in more than two years.
The shortest of offered bonds, 16-month UAH military bills, received 15 bids amounting to UAH96.5m with interest rates not higher than last week's cut-off rate. Therefore, the MoF accepted all bids in full, maintaining the cut-off rate at 15.85% and decreasing the weighted average rate by 3bp to 15.81%.
The placement of 2.4-year bonds was similar. The MoF received 21 bids amounting to UAH149.1m with rates ranging from 16.9% to 16.95% and accepted them in full. The cut-off rate remains unchanged at 16.95%, and the weighted average rate rose 4bp to 16.94%.
Finally, the MoF borrowed only UAH249.4m, the lowest amount since November 2022, when it ended its pause in rate increases after the NBU increased the cut-off rate sharply to 25%.
However, the MoF was in no hurry to borrow more. The MoF announced Feb. 19 debut auction for bond exchange, which will offer to exchange bonds maturing next week in new two-year bills launched last week and to decrease the need for funds for redemptions next week.
