Unscheduled primary auction

Обзор облигаций 25.09.2014 The MoF held an unscheduled auction and offered only one 10-year bond yesterday. Demand was likely supported by domestic QE as the MoF decreased the interest rate by 200bp and increased the maturity tenfold compared with the auction held one day earlier. Investment implications: Yesterday's auction was held with same day settlement for the MoF to refinance debt repayments, of which it refinanced 87.61% of the UAH1.60bn in principal repayments due yesterday. Yesterday's total scheduled repayments amounted to UAH2.14bn, of which UAH0.18bn was in FX.