The demand for the seventh primary auctions for the placement of domestic government bonds (OVGZ) in 2025 fell to 245.6 million UAH on Tuesday – the lowest level in several years and 6.7 times less than in previous auctions.
According to data on the Ministry of Finance's website, the cutoff rates for bonds maturing in June 2026 and June 2027 remained at 15.85% and 16.95% per annum, respectively, with all applications being satisfied.
With an offering of 5 billion UAH (hereinafter at nominal value) at each auction, the Ministry of Finance managed to attract only 97.8 million UAH and 151.6 million UAH, respectively.
At the same time, the partial decline in demand can be explained by the fact that the Ministry of Finance scheduled the debut auction on Wednesday, February 19, for the exchange of bonds issued in 2019-2020 worth 41.08 billion UAH maturing on February 26 for two-year bonds, which were placed last week at 16.65% per annum.
As reported, the law on the state budget for 2025 envisages the placement of OVGZ amounting to 579.22 billion UAH with a repayment volume of 561.98 billion UAH. At the same time, it is planned to attract $39.3 billion in external financing and fund it through a budget deficit of 1 trillion 875.87 billion UAH.
A record was achieved in 2024 for attracting funds in the OVGZ market – 638.4 billion UAH, which exceeded payments on them by 255.6 billion UAH.