Ukrainian Finance Ministry cuts rates on hryvnia-denominated bonds for first time since April 2025

MOSCOW. Jan 21 (Interfax) - The Ukrainian Finance Ministry reduced the rates on hryvnia-denominated domestic government bonds, which mature in 1.5 years and 3 years, at January 20, 2026 auctions for the first time since April 2025, as the demand far outweighed the offer, and the ministry was ready not to place some of the bonds.

The cut-off rate for the 1.5-year bonds stood at 17.05% per annum versus 17.10% previously, for the 3-year bonds at 17.49% versus 17.7%, Ukrainian media reported, citing a statement on the Finance Ministry's website. The weighted average rate for the 1.5-year bonds was 17.04% versus 17.1%, and for the 3-year bonds 17.48% versus 17.59%.

With the offer of UAH 5 billion (hereinafter at face value) per issue, the demand for the 1.5-year bonds reached UAH 10.94 billion, and UAH 13.09 billion for the 3-year bonds, while the Finance Ministry agreed to sell bonds for UAH 3 billion and UAH 2 billion, respectively.

The rate on short-term, 1-year bonds remained at 16.35%, and the ministry satisfied all bids for UAH 2.06 billion.

In order to be able to lower the rates, the Finance Ministry reduced the offer size at those auctions to UAH 7.45 billion from UAH 13 billion a week ago.