ICU Research: Non-residents' portfolio increases bond holdings
February 2, 2018
This Tuesday, the MoF sold UAH3.7bn of local currency bonds which were mostly purchased by non-residents. Wednesday was the settlement day and non-residents increased their portfolio in local currency by UAH2.54bn, including mostly bonds maturing this year.
According to details of Wednesday's deals, UAH914.5m were bonds maturing in July and UAH938.5m maturing in October 2018, the two constituting 58% of the total. UAH741.3m mature in October 2022, or 23% of the total,. Total deals amounted to UAH2.59bn to the non-residents' portfolio increase.
Investment implications: Most likely not all, but most, of the purchased bonds were transferred to non-residents on Wednesday as that portfolio rose to UAH8.4bn. In reaction to last Friday's key policy rate hike, non-residents were motivated to buy these bonds because of the hryvnia strengthening amidst the high interest rates offered.
Company — ICU