Domestic bondholders' structure

Обзор облигаций 29.01.2015 The MoF continued to sell domestic bonds with significant support from the NBU under the domestic QE program, as UAH9.94bn of bonds were sold, of which the NBU purchased UAH8.48bn since the beginning of the year. After Tuesday's auction, the NBU's portfolio rose to UAH326.59bn, increasing its share to 70.26%. The banks' portfolio rose just UAH0.06bn since the beginning of the year, while the other residents' and non-residents' portfolios declined UAH0.81bn and UAH0.51bn, respectively, decreasing their shares to 20.11%, 5.11%, and 4.53%, respectively. Investment implications: The NBU continued to purchase domestic bonds this year, most likely the same bonds which were sold by the MoF with 3-month maturities. As these bonds are scheduled to be redeemed in April, the MoF and the NBU are likely to agree that the NBU's portfolio should be restructured through the end of March. As the state budget approved this deal, it could include all bonds in the NBU's portfolio should this happen.