Bond Market Insight-Weekly review: Refinancing deals

Domestic bond market. Local currency liquidity fell last week to the year\'s low after large outflows, including the MoF\'s local currency debt principal repayments and, even more significant, Naftogaz\'s payment to Gazprom.

Although the primary auction provided the MoF with significant funds from local currency bonds, it rejected the large demand for zero-coupon bonds yet again as a message to banks to decrease their bid interest rates.

Eurobond market. The Eurobond market reversed as it slightly increased YTMs of Eurobonds at the end of last week but remained suitable for new issues coming to market. While the MoF holds back in anticipation of better conditions, corporate issuers started to take steps. MHP, Ukraine\'s largest producer of poultry and a crop grower, announced its buyback deal and new issue in March, most likely to postpone a portion of its debt repayments to 2018.
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