Domestic bond market. The MoF held primary auctions twice last week, mostly to raise significant proceeds for the state budget, but these borrowings were made mostly to finance budget needs in funds for debt repayments scheduled for the last week and for this one. These issues were also supported by the NBU via purchasing government bonds at the secondary market and by the MoF through debt repayments to provide funds to banking sector liquidity while maintaining stability.
Eurobond market. The Eurobond markets remains significantly dependent on US and public news from the Fed. Last week’s reaction on Bernanke’s speech in Congress and Senate banking committee was better-than-expected. The Eurobond market has improved, but it has become quite volatile. YTMs of Ukrainian Eurobonds declined but remain quite high for new issues.
Kiev, +38 044 2200120 extn.244
Research Dept, Investment Banking
Investment Capital Ukraine LLC