The Ministry of Finance maintained the cut-off rates for domestic government bonds (OVGZ) at the auctions on Tuesday, despite the National Bank raising the discount rate from 13% to 13.5% per annum.
According to information on the Ministry of Finance's website, the rates for the "shortest" bonds maturing in February 2026 were set at 15.1%, while the OVGZ maturing in April 2027 had a rate of 16.2%, and those maturing in November 2027 were at 16.5% per annum.
At the same time, the Ministry of Finance significantly reduced the offering at these auctions to 3-4 billion UAH for each auction, whereas the demand ranged from 5 billion UAH for the shortest bonds to 3 billion UAH for the longest ones.
When supply and demand were equal for the OVGZ maturing in November 2027, their average weighted yield even increased to 16.5% from 16.42% the previous week.
Total demand, in the absence of reserve OVGZ offerings, fell to 12.4 billion UAH from 71.5 billion UAH a week earlier, while the sales volume dropped to 10.3 billion UAH from 23.85 billion UAH.