reports
- Taras Kotovych
- Taras Kotovych
Bond Market Insight -- MinFin continues to lower interest rates on UAH...
At yesterday's auction, the Ministry of Finance lowered rates on UAH bonds again. The MoF has extended the total interest rate reduction more than 150bp during the two months after the start of the spring cycle of monetary policy easing.
- Taras Kotovych
Bond Market Insight -- Yields on UAH bonds continues to decline
The MoF continued to reduce interest rates for UAH bonds, sold the planned amount, and received UAH9.4bn of budget proceeds. Investors and traders tried to reinvest funds from last week's redemption, allowing the MoF to reduce rates by 6-20bp.
- Taras Kotovych
- Taras Kotovych
Weekly Insight -- NBU continues rate-cutting cycle
The central bank has implemented a 100bp reduction in the key interest rate, bringing it to 13.5%. This adjustment exceeded market expectations slightly, but was not entirely unpredictable.Concurrently, interest rates on certificates of deposit (CDs) were also lowered by 100bp to 13.5% for overnight instruments and 16.5% for three-month instruments. Additionally, the cost of refinancing loans has been reduced by 200bp to 17.5%.
- Taras Kotovych
Bond Market Insight -- Bond market waits for NBU to cut rates
Yesterday's auction received UAH9.4bn of demand, mainly for 12-month bills, but also strong demand for two- and three-year securities. Proceeds for the state budget amounted to almost UAH7.6bn. The MoF decreased interest rates for 12-month paper only.
- Taras Kotovych
Weekly Insight -- NBU does not prevent hryvnia weakening
Last week, hryvnia continued to weaken even though NBU FX interventions were the largest since the beginning of January.The NBU sold US$695m from international reserves last week, the largest volume of interventions in more than three months (a larger amount, US$790m, was last sold in the first week of the year). We estimate the largest volume, approximately US$215m (nearly a third of the weekly volume), was sold last Friday.
- Taras Kotovych
- Taras Kotovych
Bond Market Insight -- UAH bond rates decline further
The Ministry of Finance decreased interest rates for two out of three offered UAH bonds yesterday, coming closer to a decrease in three-month NBU CDs interest rates. Yesterday's auction provided the state budget with UAH7.2bn proceeds, including UAH5.4bn in local currency and EUR42.9m. UAH proceeds were lower due to a smaller cap for 12-month bills and lower demand for three-year notes. However, this did not prevent the Ministry from continuing to lower rates for some instruments. Four weeks af...
- Taras Kotovych
Weekly Insight -- NBU reserves boosted by foreign aid
The NBU gross international reserves spiked 18% in March and 8% YTD to US$43.8bn as foreign partners provided a record volume of new loans to Ukraine.The largest credit facilities provided to Ukraine in March included a EUR4.5bn tranche from the EU, US$1.6bn loan from Japan, US$1.5bn from Canada, and US$0.9bn from the IMF. Meanwhile, the NBU spent US$1.8bn in FX interventions to keep the hryvnia exchange rate under control. Also, Ukraine repaid US$1.0bn in external loans over the month, mostly t...
- Taras Kotovych
Bond Market Insight -- Investors concentrate on short-term bonds
The MoF borrowed almost UAH6.8bn (US$173m) yesterday with a decline in interest rates. The greatest demand was for 12-month bills, which was almost twice oversubscribed. The range of interest rates in bids narrowed to 19bp: the lowest rate was 16.15% (up 3bp), and the highest rate declined by 11bp to 16.34%. Due to the cap, the MoF accepted bids with rates up to 16.25%, which was set as a cut-off rate or 10bp lower than last week. The weighted-average rate slid by 1bp to 16.23%.
- Taras Kotovych
- Taras Kotovych
Bond Market Insight -- NBU cuts key rate—bond rates down
Yesterday, the MoF decreased interest rates for UAH bonds by 20‒30bp, accepting about half of the received demand.The largest demand and the most significant decline in interest rates were for 12-month bills. This paper was almost 3x oversubscribed—demand was UAH8.7bn while the cap was UAH3bn (US$77m). All bids were lower than last week: the highest rate was 16.6% (20bp lower), while the lowest was 16.25% (45bp lower). Due to the cap, the MoF set the cut-off rate at 16.5% and the weighted-averag...
- Taras Kotovych
Bond Market Insight -- UAH borrowings increase
Demand for UAH bonds increased by almost a third at yesterday's auction compared with the previous week. Still, thanks to a more even distribution between the instruments, the Ministry of Finance increased borrowings by almost double, to UAH8.9bn (US$231m).
- Taras Kotovych
Bond Market Insight -- UAH interest rates remain unchanged
Yesterday, the Ministry of Finance borrowed UAH7.6bn (US$198.2m) for the state budget, including UAH5.2bn (US$135.5m) in local currency. Proceeds from USD-denominated bills were US$62.7m, half compared with the previous week. Demand at yesterday's auction concentrated on 12-month UAH bills, which amounted to almost UAH6.6bn (US$171m), while the MoF set the cap at UAH4bn (US$104m). The MoF fully satisfied all non-competitive and competitive bids with rates below the cut-off level. At the same ti...
- Taras Kotovych
Bond Market Insight -- UAH borrowings steady above UAH5bn per week
Yesterday, the Ministry of Finance attracted UAH11bn to the budget, half of which was in hryvnia. Overall, borrowings are down from the previous week by about a third, but they remain significantly higher than in late January and the first two weeks of February. The decrease was due to lower proceeds in foreign currency.
- Taras Kotovych
- Taras Kotovych
- Taras Kotovych
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