The government has attracted over 376 billion hryvnias in 10 months: who is buying government bonds

According to hvylya.net: During January-October 2025, the Ukrainian government successfully attracted over 376 billion hryvnias, up to 2 billion US dollars and over 643 million euros from the sale of domestic government bonds at auctions. These funds were used for the redemption of domestic government debt, which strengthened the financial stability of the country and provided an additional resource of about 77 billion hryvnias.

From January to October 2025, the government has attracted 376.6 billion hryvnias, 1.97 billion US dollars and 643.4 million euros from the placement of domestic government bonds (OVDP) at auctions. During this period, 299.4 billion hryvnias, 2.33 billion US dollars and 752.5 million euros were directed to the redemption of domestic state debt securities. This means a net attraction of funds in the domestic market of about 77 billion hryvnias.

Volumes and profitability of government bonds

From the beginning of the full-scale invasion until October 31, 2025, total attractions at primary auctions amounted to 1.43 trillion hryvnias, 10.3 billion US dollars and 3.1 billion euros. The maximum yield of government bonds placed at auctions in October was 17.80% per annum in hryvnias and 4.11% per annum in US dollars. OVDP denominated in euros were not placed in October. Such a high yield reflects both inflationary risks and a premium for war risks for investors.

The data from the report shows that significant amounts of funds have been attracted at primary auctions since the beginning of the invasion until October 2025, and the yield indicators of government bonds remained at quite a high level, reflecting inflationary and military risks for potential investors.

Military bonds portfolio

The largest volume of military bonds is concentrated in primary dealer banks. The total portfolio of military bonds owned by individuals and legal entities has increased to 172.9 billion hryvnias in equivalent compared to 158.9 billion hryvnias as of November 1, 2024. The volume of military bonds owned by non-residents was 3.94 billion hryvnias, 12.2 million US dollars and 10 million euros as of November 1, 2025, which indicates foreign investors' confidence in Ukraine's financial viability.

In the past year, there has been an increase in foreign investors' confidence in Ukraine due to the rise in the volumes of military bonds held by them, indicating a positive trend in the country's economy and financial stability.

Opportunities of the Ministry of Finance

In February 2025, the National Bank enhanced the capabilities for the Ministry of Finance to conduct active operations aimed at improving the effectiveness of domestic public debt management. The effective operation of the domestic debt market is a key prerequisite for ensuring macro-financial stability and financing military and social expenditures without printing money.

The measures taken by the National Bank indicate a commitment to ensuring effective management of domestic public debt to maximize financial stability and avoid negative consequences from excessive borrowing for financing various sectors of the economy.