The Finance Ministry managed to sell government bonds at UAH 6.6 billion

At yesterday's auction of government bonds the Ministry of Finance managed to attract the budget UAH 6.6 billion, whereas at the previous auction on February 25 securities were sold only 1, 6 billion UAH.

So, yesterday sold t-bills are:

the

9-month in EUR in the amount of € 201 million or 5,557 billion.

• 6-month in local currency in the amount of 1,026 billion with a yield of 10%,

compared with the auction held 2 weeks ago, a minimum level of profitability in the bids increased from 9.49% to 9.8%, while the weighted average yield - from 9.82% to 9.9%. The yield of government bonds in euros to 2.22%, which corresponds to yields of the securities placed at the previous auction in December. The Ministry of Finance refused to place sredneprodolzhitelny securities in local currency.

Customers were ready to buy securities at UAH 1.52 billion UAH, but with a yield of 12%, so the Ministry of Finance has rejected some applications. The share of non-residents for the first time exceeded 15% of the total volume of issued government bonds. As of February 1, the non-resident owned government bonds in the amount 124,9 billion. The Finance Ministry plans to place short-term securities to construct yield curve.

In 2020 the Ministry plans to attract the domestic market 242 billion, the external - 119 billion UAH in foreign currency equivalent. Distribution coronavirus pressure on financial markets and reduces the number of non-residents wishing to purchase hryvnia government bonds, which are considered risky.

However, yesterday the fed lowered the discount rate from 1.5 to 1.75% up to 1-1. 25% in order to stimulate the development of the American economy on the background caused by coronaviruses crisis. It might calm the world's financial markets and increase the demand for Ukrainian hryvnia bonds.