ICU Bond Market Insight: August 8, 2022

Kyiv Post | Aug 9, 2022 at 9:30 AM
  • The NSSMC’s decision will allow the market to gradually build a yield curve that reflects a fair level of compensation for the risk of investing in Ukrainian local-currency sovereign debt.
  • NBU reserves statistics are becoming tricky to interpret as it appears that the government channels a part of international financial assistance to its accounts outside of the NBU—likely at Ukreximbank.
  • Also, we hypothesize that the government could have sold a part of its holdings at Ukreximbank in the market and, thus, the reported NBU interventions were substantially distorted by such government transactions.