Ukrainian households invested a record amount in domestic government bonds in February, even as yields declined, with the central bank saying the trend reflects strong demand and easing inflation rather than emerging risks, reported Ukraine Business News.

Deputy Governor of the National Bank of Ukraine (NBU) Volodymyr Lepushynskyi said the Finance Ministry had adjusted issuance policy in response to market conditions, reducing both supply and yields on local-currency securities.

“With strong demand and decreasing inflation, there is room to lower yields,” he said.

Since late January, yields on one- and two-year hryvnia-denominated bonds have fallen from 16.35% to 15.15%, while three-year securities dropped from 17.5% to 15.87%. The shift follows the NBU’s decision to cut its benchmark interest rate from 15.5% to 15% at the end of January, maintaining that level in March.

Despite the decline in returns, demand from retail investors has surged. Lepushynskyi said Ukrainians invested around UAH10bn ($250mn) in local-currency bonds in February alone — a monthly record.

Since the start of the year, household investment in government bonds has risen by 24%, and by roughly 550% since the introduction of martial law in 2022. The total value of UAH-denominated bonds held by the public now exceeds UAH82bn, while combined holdings, including foreign-currency instruments, amount to around UAH130bn.

The NBU also pointed to a previously underappreciated gap between bond yields and bank deposit rates, which has made government securities increasingly attractive to savers.

Analysts say the trend reflects growing confidence in domestic debt instruments and a shift in household savings behaviour, as investors seek higher returns and relative stability amid ongoing economic uncertainty.