Finance Ministry cuts rates on govt domestic loan bonds by 0.2 p.p.
The Finance Ministry of Ukraine cuts rates on govt domestic loan bonds by 0.19-0.25 p.p. at its primary auctions on September 3, exactly two days before the National Bank of Ukraine (NBU) took a decision on presumable change of a percentage rate.
According to the ministry's report on its website, a maximum profit margins for three-month securities was 16.25%, for 12-month bonds – 15.95% and three-year bonds – 16% per annum.
On the eve of reduction of the discount rate by 0.5-1 p.p. that was expected by the market participants, a demand on the auctions significantly grew, in particular for 3-year securities it was UAH 1.89 billion (at face value) compared to UAH 0.49 billion at the similar auction two weeks ago.
As a result, for lowering rates, the Ministry of Finance dismissed 20 of the 62 applications filed in the amount of over UAH 1 billion UAH, but it was still able to attract more than UAH 1.9 billion UAH.