In general, the terms of UAH-denominated bills have not changed. The market was offered the same instruments maturing in April this year and in March 2023. In addition, USD-denominated bills maturing at the end of April 2023 were offered.
Demand for the shortest paper has grown, and UAH 208m was raised for the budget. This time, though, demand for 12-month bills was slightly lower. Despite 33 bids, only UAH 5.4 billion at face value was seen in demand.
Investors were not much interested in USD-denominated bills, so they had minimal impact on total borrowings, adding only UAH 360m to budget proceeds.
A likely reason is that the interest rate was the same as on USD-denominated bills offered before the war, 3.7%, but given the current situation and market conditions, these instruments were even less attractive than earlier.
Overall, in general, the budget received a reassuring amount of money; however, there was a tendency in this auction to lower the amount in demand. This could be temporary, since the range of investors is gradually expanding. The volume of borrowings through this instrument should stabilize, giving the government, perhaps not large amounts of support, but every week.
RESEARCH TEAM: Taras Kotovych
Complete report: https://icu.ua/en
