Ukrainian Finance Ministry ups rate on 2-year govt bond to 19.25%, refuses to raise it for shorter-term bonds

MOSCOW. Nov 23 (Interfax) - The Ukrainian Finance Ministry raised the rate on two-year government bonds by 0.75 percentage points at the primary auctions on Tuesday as compared to the auctions held two years ago, in a move that helped increase these bonds' sales to 918.3 million hryvni.

At the same time, the Finance Ministry refused to raise the rate on shorter-term securities despite the presence of considerable demand, keeping the yield rates on four-month and ten-month government bonds at 14% per annum, and on 15-month bonds at 18.5% per annum, regardless of a decline in their sales to 261.4 million hryvni, Ukrainian media said, citing the Finance Ministry.

The bond seller declined three out of 40 bids that were submitted: for 3,163,900,000 hryvni (face value figures here and hereinafter), at 15% for four months, for 1,982,500,000 hryvni at 18% for ten months, and for 900 million hryvni at 19% for 15 months.

The Finance Ministry chose to take such a hardline position even despite payments of almost 20 billion hryvni on earlier issued government bonds due on Wednesday, around 15 billion hryvni of which will be redemption payments.