2-year bonds sold

Обзор облигаций 16.12.2014 Following a series of unscheduled primary auctions last week, the MoF opened this week with yet another unscheduled primary auction at which it sold UAH1.00bn in 2-year bonds via one bid at the usual 17.60% rate to provide UAH1.01bn of proceeds. So far, a total of UAH6.10bn denominated in local currency has been raised since the beginning of the month, most likely to refinance UAH5.33bn debt principal and interest repayments scheduled for December. It appears that the state budget needed additional financing to cover current expenditures prior the end of the year. Because of the high volume of budget proceeds raised at recent auctions, demand was most likely supported under domestic QE. We expect to see more unscheduled auctions through the end of the month.