Investors snub Ukraine govt bond auction

KIEV: Investors placed no bids for Ukrainian government bonds at an auction on Tuesday, the Finance Ministry said.

The ministry, which holds auctions at least once a week, had offered five- and seven-year hryvnia bonds.

Investors have snubbed a number of auctions recently and analysts say local banks lack liquidity as their customers make quarterly income tax and VAT payments.

Foreign investors have been mostly absent from government bond auctions for more than a year, mainly on the view that Ukraine's hryvnia currency, which is pegged to the dollar, is overvalued and will be allowed to depreciate after parliamentary elections are held in October.