OREANDA-NEWS. Ukrainian Finance Ministry failed to place domestic government bonds on Thursday, September 27. The Ministry of Finance offered bonds with circulation periods of three, four, seven and ten years. On Monday, 24 September, the ministry had sold only three-year securities with the yield of 6.6%. The total amount was UAH 12,997,400. The ministry also offered four-year, seven-year and ten-year bonds, however, it failed to place them. Since the start of bond trading in 2007, the ministry has sold domestic government bonds for UAH 2,626.978 mln. In 2006, the ministry sold domestic government bonds totaling UAH 1,597.587 mln.

According to analysts of Millennium Capital,the key reason for the low success in placing domestic government bonds is low offered yield. With privatization income lagging, the government strives to use more of the domestic bonds as a channel to finance the budget deficit and so they are likely to increase the offered yield rate in the near future.