Bond Yields Continue to Fall

Bond Yields Continue to Fall

James Brooke, UBN

🔵 The Finance Ministry depressed yields on five out of six bonds sold yesterday at auction, the Ministry reports on Facebook. For the hryvnia bonds, yields ranged from 9.2% for 3-month bonds to 12.05% for 3-year bonds. The lone dollar bond, a 1-year bond, went for 3.7%, down 10 bps from the last auction. Overall, the auction raised $377.2 million – up 10% compared to the prior week, according to results posted on the Ministry’s website.
🔵 “Given still light positioning, there is a potential for ongoing massive foreign inflows into UAH bonds,” ICU predicted yesterday in a 20-page report on the government hryvnia bond market, “UAH bonds – attractive again.” Ukraine’s bonds offer relatively high yields against a background of relatively modest macro, credit, and FX risks, especially on a short-term horizon,” writes the Kyiv investment bank. “High real rates, fast economic recovery, and favourable external conditions support the currency…By the end of the year, we see the currency close to current levels (UAH27.5-28/USD).”
Share!

Related posts

Ukrainian 2021 GDP Hits New High

Ukraine’s GDP Sets a Record for 2021, With External Borrowing Lower and +45% Increase in the...

Continue reading

President to Launch 5% Mortgage Programme

Zelensky's administration intends to launch the "Ukrainian Dream" program with a low mortgage...

Continue reading

Record high GDP

Ukraine’s GDP has reached a historic high -- $195 billion, . Looking ahead, growth will be...

Continue reading