Primary auction results

Обзор облигаций 21.01.2016 At yesterday's primary auction, the MoF sold UAH100.0m (par value) of 2-year bonds at 19.70%, resulting in a 20.60% YTM for this bond. As a result of this offering, the MoF extended the yield curve on local currency bonds to two years and next week will try to extend it to a 3-year maturity. Investment implications: Yesterday, the MoF attracted a total of UAH235m in demand in five bids at interest rates in the range of 19.70-21.00% but accepted only one bid with the lowest interest rate. As the MoF most likely does not need significant financing in local currency, this auction provided an important opportunity to build the yield curve at the primary market.