According to analyst Oleksiy Blinov, as the growth dynamics of the consumer price index slowed to 3.2% per annum in March, the interest rate for inflation-linked government bonds in May will be 5.4% per annum (a three-year low), compared to 9.3% in November 2023 and 23.5% in May 2023.
The total amount of payments under these OVDPs on May 10 will amount to ₴3.9B compared to ₴17.1B a year earlier. However, the historical average rate for inflationary OVDPs will still be 12.6% annually.
The most profitable type of government bonds in the NBU’s portfolio remains the government bonds issued in 2022, where the yield is determined by the discount rate. The historical average rate for these OVDPs is 24.5%, but it should decrease to 19% in June and 14-15% at the end of 2024. This will occur in response to the recent reduction in the discount rate.