At October, 21 primary auctionthe state budget received almost UAH15bn, only from UAH military and regular bonds.
The one-year military paper received the smallest demand, just UAH4bn, but in 43 bids. The ministry fully satisfied all of them at the usual rate levels—16.35% maximum and weighted average rate.
Demand for 20-month securities slightly exceeded the cap, with interest rates in bids at the usual level. Therefore, the ministry had to satisfy all bids, but at a little less than bidders wanted. The MoF fully satisfied non-competitive bids (satisfied at the weighted average rate) and bids with lower yields than the cut-off rate.
At the same time, the MoF had to cut bids much more for the three-year note. Again, non-competitive and competitive bids with rates below the cut-off level were fully satisfied. However, most of the bidders probably received only a bit more than half of what they bid for. The MoF received UAH7.8bn of bids vs UAH5bn cap, of which only UAH511m were non-competitive. Given that the weighted average rate is similar to the cut-off rate, the volume of demand with a yield below the cut-off rate was insignificant.
The Ministry of Finance attracted UAH14.9bn to the budget by placing only three UAH instruments. These were the smallest proceeds in October, but they are almost similar to the first auction of October if we compare only these three instruments. However, two weeks ago, demand was focused on two shorter terms of maturity, but on October 21, that was on a three-year note.
