Primary auction results

Обзор облигаций 02.03.2016 The MoF cancelled yesterday's auction due to insufficient demand and interest rates which were unacceptable for the MoF. Demand amounted to UAH5.5m at 20.10% for 6-month bonds and UAH56.0m at 19.0% and 20.1% for 12-month bonds. The MoF's cut-off rate is 18.50%. Investment implications: With a UAH16.83bn balance at its treasury account, the MoF can fulfill its budget expenditures without new financing; thus it has no need to refinance principal repayments, decreasing budget expenditures on debt servicing. We expect low to no demand over the upcoming weeks.