Sales of government bonds during the week increased 2.6 times
Under pressure of active sales of foreign currency by non-residents wishing to purchase hryvnia government bonds, the hryvnia exchange rate strengthened to a 4-year high.
If a week ago, the Ministry of Finance at the auction brought in a budget 7,026 billion, yesterday he posted bonds 11,412 billion UAH, most of which amounted to 4-year bonds, yields on which have been reduced in local currency to 10.9%, and for denominaban in Euro to a record low of 2.22%.
Yesterday, the auction has placed the following bonds:
the
1-year-old under of 11.42 % (a reduction of 158 BP) for 539 million UAH,
2-year-old under of 11.1 % (a decline of 91 BP) for 1,036 billion UAH,
4-year-old under 10.9 per cent (a decrease of 77 BP) for the 4,123 billion UAH,
6-month Euro-denominated under 2.2 percent on the amount of 198,8 million euros.
- 3-month under 11,78% (a decrease of 128бп) 530 million UAH,
the Auction, which the Ministry of Finance normally meets on Tuesdays, attract more foreign currency from non-residents. Yesterday they sold a significant volume, so the Central Bank managed to keep the exchange rate only through the active vicopisano residues. Through a system of Matching, the NBU bought 90-120 million $, but the torque is still stronger on the 4 COP 23,45/of 23.47 UAH/$.
Today, the supply of currency on the interbank market remain high. Non-residents will be calculated according to the purchased bonds yesterday, as exporters will sell the currency to the end of the year to close hryvnia obligations.
Receipt of foreign currency from non-residents will continue to put pressure on the dollar, as the government plans to continue to attract funds to cover the budget deficit. According to the NBU, in 2020-2022 years, Ukraine must repay a debt of 24 billion $. compared to the current year, foreign currency debt in 2020 will be reduced somewhat, but remain significant. Simultaneously, the national Bank notes that the state still is unable to pay for foreign currency debts on their own, so the need to refinance. That is part of the debt will be repaid with new loans.
