Government Bonds Auctions and Global Market Dynamics: Weekly Market Overview (25–29 November)
?? Government bonds. As a result of the auction, budget revenues exceeded UAH 19 billion, while demand remained significantly oversubscribed. Participants showed the highest interest in the primary issuance of potential "reserve" domestic government bonds maturing in May 2028. The bid volume for these bonds amounted to approximately UAH 36 billion against an offered amount of UAH 5 billion. Competitive demand for UAH 17 billion was received at rates ranging from 15.49% to 16.80%, so the weighted average rate was set at 16.01%, with a marginal yield of 16.25%. Military domestic government bonds with maturities of one and a half and two and a half years received a demand of UAH 17.6 billion and UAH 16.9 billion and were placed within the total supply of UAH 10 billion with key interest rates of 15.20% and 16.19%. Meanwhile, three-year government bonds (5 million units) attracted demand of UAH 3.8 billion, with unanimous competitive bids at 16.80%.
??Foreign exchange market. On the currency market, rising net demand among bank clients led to a weekly depreciation of the hryvnia to ~USD/UAH 41.60 (+0.6% WoW) and an increase in National Bank of Ukraine interventions by 20% WoW to USD 709 million. During trading on 25–28 November, the market's demand-supply gap expanded by 41% WoW to USD 408 million. Notably, the currency deficit from legal entities tripled to USD 201 million, driven by an increase in currency purchases to USD 1.2 billion (+7% WoW) and a reduction in sales to USD 1 billion (-7% WoW). At the same time, households reduced their net currency purchases to USD 207 million (-11% WoW).
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?? Global News. On the international market, the leading US stock indices maintained their tendency to new historical highs amid optimism about the key personnel decisions of the newly elected US President. At the same time, the European market showed restrained results under the influence of mixed inflation data and ongoing geopolitical uncertainty. A report from the U.S. Department of Commerce highlighted market-anticipated increases in overall and core PCE price indices, which rose to 2.3% YoY and 2.8% YoY, respectively.