A successful auction of government bonds supported the hryvnia

2020-05-14 12:06:48
A successful auction of government bonds supported the hryvnia

At yesterday's auction of government bonds the Ministry of Finance has increased the sale of securities compared to the previous week almost doubled from 10.02 to 19,391 billion, without changing the rate of return.


the auction has placed the following bonds :


6-month in the amount of 6,323 billion under of 11.28% per annum.

  • 3-month in the amount 13,068 billion under of 11.26% per annum,


After a long break, the MOF resumed the conduct of primary auctions, and in the last three weeks drew on them 30,8 billion and 164 million $. Earlier, the Ministry said that in may and June will be put up for auction only two issues of bonds maturing in 3 and 6 months.


yesterday, the national Bank lowered the discount rate from 10% to 8%, on April 30, began to conduct tenders for the provision of refinancing for a period of 90 days and up to 5 years with no restrictions on the use of banks of these funds, including the purchase of government bonds. For the first 3 tenders of the national Bank for 9.8 billion.


has not Yet held primary auctions to sell government bonds in national currency, the rate at which the Finance Ministry is held at 10% per annum, the yield on the secondary market rose sharply, although it started to decline gradually. Yield curve on the website of the NBU for short-term securities is 14% per annum with a gradual increase to 15% over the 3-year and a decrease to 13% in 7-year bonds.


the exchange Rate of hryvnia on the interbank market this week in favor of increasing the supply of currency, which the residents sell to buy government bonds. National Bank on Tuesday bought from the market of the excess $ 55 million, and on Wednesday – more than 60 million $ supporting rate 26,69/26,71 UAH/$.


Adopted yesterday by the Verkhovna Rada in the second reading "antiaromaticity" bill 2571-d will strengthen the position of state courts on claims of nationalization of PrivatBank, and open the way for further cooperation with the IMF, which at the end of may may grant Ukraine the first tranche of the new funding program.


the Restoration of IMF financing and the successful placement of government bonds augur well for the stability of the hryvnia in the near future.

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