Tomorrow’s auction of government hryvnia bonds should draw more foreign buyers, analysts predict

Tomorrow’s auction of government hryvnia bonds should draw more foreign buyers, analysts predict. Last week saw an uptick of foreign buying — $79 million – breaking a fall in foreign holdings since January. Fueling interest are: high yields – 12.25% for 4-year bonds, and a sense that the hryvnia/dollar exchange rate has stabilized after a 20% drop earlier this year. Since the start of the year, foreign holdings of the bonds dropped 34%, reports the National Bank of Ukraine. On Thursday, Dmytro Sologub, a deputy governor of the central bank, said the government’s need to finance the budget deficit is behind the recent increase in bond rates.