The boom of investing in government bonds: Ukrainians buy bonds twice as much during the war

Since the beginning of the full-scale invasion of Ukraine by the Russian Federation, there has been a significant increase in the interest of citizens and entrepreneurs in investing in domestic government bonds (DGBs). This was reported by the press service of the Ministry of Finance of Ukraine.

During this period, the volume of investments by legal entities increased by 1.7 times, reaching UAH 139 billion, while investments by individuals more than doubled to UAH 53.3 billion.

The launch of the possibility of purchasing military bonds through the Diia app on October 3, 2022, led to purchases of securities worth more than UAH 2.8 billion.

The Ministry of Finance points out that one of the key reasons for the growing interest is the attractiveness of such investments, as the yield on government bonds is much higher than the inflation rate. For example, the real weighted average yield of hryvnia bonds in December 2023 was 12.1% year-on-year after subtracting official inflation.

It is noted that this trend indicates a high level of confidence in the Ukrainian financial market and a strategic understanding of the benefits of investing in domestic government bonds during an economically important period of war. Such investments not only ensure capital security but also bring a high level of income to citizens and businesses.