Bonds: 5-year bonds re-issued

Обзор облигаций 14.10.2014 At the two additional auctions held last Friday and yesterday, the MoF raised UAH2.30bn in funds. The MoF sold UAH1.60bn in 5-year bonds last Friday at 14.25% and sold another UAH0.70bn of the same bonds at the same interest rate yesterday. Investment implications: Bonds were sold to a sole bidder at yesterday's auction, and last Friday's auction attracted two bids. These bids most likely had domestic QE support or will be purchased by the NBU later this week. Refinancing loans by using bonds as collateral is possible this week. Today, the MoF will offer the same 5-year bond as well as 7-year bonds sold at the end of September. All these longer term maturities are unattractive for the market, we might see only bids that are supported by domestic QE.