Bond Market Insight: Everybody Wants Reserve Bonds

The Ministry of Finance continues attracting the bulk of funds from bonds that will potentially become reserve bonds (the NBU has not yet decided on them), receiving significant demand and reducing interest rates. At the same time, military bonds are only a minor support for budgetary needs. Bids for 1.5-year bills were again in the 15-16% range, closer to the maximum level as a week ago. The Ministry continued last week’s policy and did not revise the cut-off rate, satisfying only 16% of..