June 16 primary auction results.The Ministry of Finance borrowed almost UAH4.1bn for the budget from three UAH-denominated bonds.
The shortest paper received 26 bids totalling UAH1.3bn, but, as last week, the MoF refused to increase the cut-off rate by 3bp and rejected one bid for UAH50m, and raised UAH1.3bn for the budget without changes in yields.
The 1.9-year security was the only one to receive oversubscription. The total volume of bids was UAH3.8bn vs the cap of UAH2bn. As a result, the Ministry of Finance rejected two bids in full, but the rest were partially satisfied in accordance with the rules. Accordingly, the budget received UAH2bn with a cut-off rate decline of 1bp.
A note maturing in April 2029 received the least demand, yet still saw noticeable competition. The minimum bid rate decreased by 10 bp to 16%, which ultimately reduced the weighted average auction rate by 5 bp to 16.1% with the cut-off rate unchanged.
