Ukrainian Finance Ministry lowers dollar bond rates by another 0.4 pp, UAH bond rates by another 0.1 pp

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Ukrainian Finance Ministry lowers dollar bond rates by another 0.4 pp, UAH bond rates by another 0.1 pp

MOSCOW. March 4 (Interfax) - The Ukrainian Finance Ministry has for the seventh successive auction lowered rates for hryvnia-denominated domestic government bonds, which had prior to that been unchanged since April 2025.

The cutoff rate for 13-month military UAH bonds fell to 15.19% per annum from 15.28% a week before, and the rate for the new 38-month bonds dropped to 16.20% from 16.30%, Ukrainian media quoted the Finance Ministry as saying in a statement on its website.

The weighted average rates fell to 15.13% from 15.22% for the 13-month and to 16.16% from 16.26% for the 38-month bonds.

The Finance Ministry also lowered rates at this year's second auction for 18-month dollar-denominated domestic government bonds. Thus, the cutoff rate decreased to 3.47% per annum from 3.84% last Tuesday, and the weighted average rate fell to 3.43% per annum from 3.80%.

As reported, the National Bank of Ukraine (NBU) on January 30 lowered its key policy rate to 15% from the 15.5% at which it had been held since March 2025. Overall, rates for one-year domestic government bonds have dropped by 1.16 percentage points and rates for three-year bonds by 1.29 percentage points since mid-January.

The Finance Ministry kept offerings of regular bonds at face value low at UAH 2 billion at each hryvnia auction on Tuesday.

Demand for the 13-month bonds decreased to UAH 4.63 billion this week from UAH 9.15 billion a week ago, while for the 38-month bonds it grew to UAH 17.87 billion from UAH 16.39 billion. The Finance Ministry accepted, fully or partially, 24 of 32 bids for short-term bonds and 31 of 39 bids for longer bonds.

Demand for dollar-denominated bonds fell to $384.6 million from $480.5 million a week ago. Though the number of bids increased to 140 from 91, the Finance Ministry reduced the offer by fourfold to $50 million from $200 million a week ago, which allowed it to lower the rates. The Finance Ministry accepted 47 bids this week versus 78 bids a week ago.