At March 3 primary auction, the MoF continued to lower bond yields, but room for further decreases is becoming limited. The most notable thing was that the minimum bid rate for the one-year UAH bill did not change WoW, and for the three-year note, it increased insignificantly.
The range of bid rates for one-year paper remained the same as last week, at 15.1-15.4%, although some participants shifted their preferences slightly closer to the minimum level. Having received UAH4.6bn in bids, the MoF sold the planned volume and reduced the cut-off and weighted-average rates by 9bp to 15.19% and 15.13%, respectively.
At the same time, the range of rates in bids for the three-year note narrowed from 84bp to 61bp. The maximum bid rate fell by 19bp to 16.6%, while the minimum rate increased by 4bp to 15.99%. For this instrument, the bidders' desires also shifted closer to the bottom, as the MoF set the cut-off rate at 16.2% and the weighted average rate at 16.16%, both down 10bp WoW.
Thus, yields on one-year paper have decreased by 122bp YTD, and on three-year note by 164bp.
Meanwhile, competition has extended the rate cut to FX-denominated securities. Since the MoF offered only US$50m of bills, and this is currently the last placement of FX-denominated bonds until the end of the 1Q26, the bid-to-cover ratio for this instrument has almost reached 8x. While the maximum bid rate decreased by only 2bp to 3.95%, the minimum rate decreased by 31bp to 3.38%. Therefore, the Ministry of Finance set a cut-off rate of 3.47% or 38bp lower WoW. The ministry set the weighted-average rate at 3.43%, down 37bp WoW.
Official results on issuance of domestic bonds
