Primary auction results

Обзор облигаций 16.01.2015 The MoF held an unscheduled primary auction yesterday, offering only one 3-month bond instead of the 6-month, 2-year and 5-year bonds scheduled this past Tuesday. After demand for the 6-month bonds at 19-20% was rejected, the MoF collected four bids for a total of UAH3.23bn (par value) at 17% to raise UAH3.12bn in proceeds. Investment implications: The MoF appears to have negotiated with potential investors to set rates at an agreed upon level to satisfy both the MoF's and banks' needs. Although banking sector liquidity was very high with slight absorption by the NBU, forthcoming NBU statistics on bondholders' portfolios will show whether or not domestic QE support was utilized.