IGLBs market (UAH): As NBU Monetary Policy Committee had not its usual get-together in November,all attention at the market was focused on inflation reaching its monthly 0.8% in October, or 10.3% when counted at its annual rate; or 9.4% since the beginning of the year. That negatively affected the profitability of IGLBs in the primary market. The Ministry of Finance gradually raised yields for repayment range in the reporting month, in order to keep buyers investing and revive the demand at primary auctions. The devaluation of the hryvnia and the risks of Russian military invasion in Ukraine have affected the demand for IGLBs in dollar. Yields on all IGLBs increased as follows: the annual IGLBs up to 12%, the 2-year IGLBs up to 13%, the 3-year IGLBs up to 13.3%, and the 6-year IGLBs up to 13.7%. The total amount of funds raised by the Ministry of Finance in November increased from UAH 11.2 billion up to 43.7 billion UAH.
The IGLBs Market (USD/EURO): At the initial auctions, the Ministry of Finance kept the significant volumes of currency growing through dollar IGLBs selling with 3.7% yields (annual) and 3.9% (2-year), which facilitated the raise of about 220 million dollars. The demand in the secondary market revived due to the devaluation of the hryvnia.
The OZDP Market (USD): There was no demand for OZDP in November. The risk of neighbouring country’s hostility encouraged selling, which made OZDP cheaper and increased returns on all the ranges. Yields on OZDP maturing in 2024-2032 reached 7.1% -9.3%.
Deposits: In November, deposit rates rose up: the short-term hryvnia and dollar deposits (UIRD 3m) up to 7.3% and 0.4%, annual hryvnia and dollar (UIRD 12m) – up to 8.7% and 1%, respectively.
The foreign exchange market: The hryvnia dropped against the dollar by 3.2% from 26.32 to 27.17 UAH per 1 USD. The main reasons for the weakening of the national currency were tensions on the border with a hostile neighbour.
The stock market: After the October highs, the western markets dropped to their previous, namely: S&P 500 and Dow Jones fell by 0.7% and 3.5%, respectively. The Ukrainian market (UX index) grew by 1.5%, and its growth was driven by shares of PJSC Ukrnafta, + 5%.
NBU activity: Skipped meeting of the NBU Monetary Policy Committee in November and high inflation rates had a negative impact on the primary and secondary markets, as participants saw a possible discount rate increase at the next meeting in December
