Primary auction failed

Primary auction failed



21 січня 2015 года
ICU

Despite high local currency liquidity and the offering of zero-coupon bonds, yesterday's scheduled primary auction failed. Even though the MoF replaced the 5-year bond with a 6-month maturity, while maintaining the 2-year bond offering as planned, without domestic QE, the auction attracted no bids.

Investment implications: As the NBU did not purchase all of the zero-coupon bonds issued last week, a small portion of bonds could have been purchased by market investors. Yesterday's auction proved that the market demands 3-month bonds as longer maturities attracted no demand. If the MoF needs additional financing to cover repayments, we could see unscheduled auctions with domestic QE support.

Источник: ICU

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