Successful auction

Обзор облигаций 16.01.2015 Yesterday's unscheduled primary auction not only covered Wednesday's debt repayments but also provided additional funds. Following Tuesday's rejected demand for 6-month bonds at rates of 19-20%, the MoF decided to decrease the maturity and cost of new debt, offering only 3-month bonds. All four bids for a total of UAH3.23bn (par value) provided UAH3.12bn in proceeds. Even though all bids were at 17.00%, most several bids came from the market. 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, the NBU's statistics on bondholders' portfolios will show whether or not domestic QE support was utilized.