The Finance Ministry of Ukraine at Dec. 10 auctions before the anticipated review of the refinancing rate downwards by the National Bank of Ukraine (NBU) in two days was able to place new 48-month government domestic loans bonds cutting the yield to 11.7 percent compared with 12.64 percent recorded two weeks ago for the 45-month securities.
According to a posting on the website of the ministry, the offer of 48-month government bonds was limited with Hr 3 billion (the nominal value), although initially there was no limit, while demand for the securities most popular among nonresidents reached Hr 11.36 billion.
As a result, the Finance Ministry satisfied 22 out of 57 applications with an average yield of 11.67 percent per annum, dismissing 35 with yields up to 12.5 percent per annum.
Another successful auction was the sale of 36-month securities with a cut-off yield of 12.05 percent compared with 13.12 percent in a similar auction four weeks ago. With an offer amounting to Hr 1 billion, demand for them reached Hr 2.02 billion, and the Finance Ministry dismissed four out of 12 applications for which buyers requested up to 13.25 percent per annum.
At the same time, for shorter securities – five months and 10 months – the placement volumes were lower than the supply volume, which amounted to Hr 300 and 500 million, respectively. In particular, the 10-month government bonds were sold for Hr 212.6 million, while demand was only Hr 18 million more, and the yield for them was reduced to 13 percent from 13.5 percent three weeks ago.
As for the five-month bonds, the Finance Ministry refused to sell them at the yields requested from five applications for Hr 348.49 million varying from 14.1 percent to 14.75 percent.
