Trends of the Instruments. September 2021

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Trends of the Instruments. September 2021

IGLBs market (UAH): In contrast to inaction at the market in August, the Ministry of Finance
actively tried to grow back demand at primary auctions in September. Tight monetary policy from
the NBU encouraged that even more, while trying to get control over rising inflation, which had
reached 7.5% since the beginning of the year. Yields on all IGLBs increased in the reporting month,
namely: the annual IGLBs increased from 11.15% to 11.5%; the 2-year IGLBs — from 12.1% to
12.4%; the 3-year IGLBs increased from 12.4% to 12.5%; the 6 -years IGLBs did from 12.75% to
13.0%. The total amount of funds raised by the Ministry of Finance in September was insignificant
and amounted to UAH 12.1 billion.

IGLBs Market (USD / EUR): At the initial auctions, the Ministry of Finance offered the 2-year IGLBs in
US dollars only once and left their yield at 3.9. Demand for foreign currency instruments was quite
weak compared to the previous month, which allowed the Ministry of Finance to raise about $ 85
million. There was no demand on the secondary market due to the stabilization of the hryvnia.
OZDP Market (USD): There was no demand for OZDP in September due to increased risk fears in
global financial markets, in view of the issue of Evergrande developer in China and rising energy
prices. As a result, OZDP yields maturing in 2021-2028 increased by 1% -2.3% to 5.1% -7.2%.
Deposits: In September, deposit rates also increased: the short-term in hryvnia and dollar (UIRD
3m) raised by 10 points up to 7% and 0.4%, the one-year deposits in hryvnia and dollar (UIRD 12m)
— by 15-25 points up to 8.6% and 0.9%, respectively.

Foreign exchange market: The hryvnia strengthened against the dollar by 1.1%, continuing the
trend, and reached from UAH 26.86 to UAH 26.58 / USD. The main reasons stabilizing the national
currency remained unchanged, which were the strong exports from metal producers, farmers and
IT services.

Stock Market: US indices finally stopped their upward three-month trend and showed a month of
change. The S&P 500 and Dow Jones fell 4.8% and 4.3%, respectively, in September. The Ukrainian
market (the UX index) decreased by 3.3%, where the majority of shares included in the index
showed a downward trend.

The NBU activity: The NBU Monetary Policy Committee in September raised the discount rate by 50
points up to 8.5% in September, showing the regulator’s logical steps to take control over rising
inflation. The expectations at the market seemed to become a reality when the tighter monetary
policy was announced.

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