2-year bonds sold

Обзор облигаций 07.11.2014 After Tuesday's failed primary auction, the MoF held an unscheduled primary auction offering only 2-year bonds yesterday. As it had to repay a large portion of principal and interest repayments on Wednesday, demand at yesterday's expected auction came from two bids, both submitted at 16.52%, to raise a total of UAH936.0m (par value). The UAH936.41m of proceeds covered nearly half of Wednesday's debt repayments, including UAH1.20bn of principal repayments and UAH0.52bn of interest repayments in local currency, and US$10.33m (UAH139.93m at the market exchange rate) in interest payments on USD-denominated bonds. The MoF routinely holds unscheduled auctions using domestic QE to support demand when it needs funds to fulfil budget expenditures and properly repay all scheduled debt repayments.