Ukrainian households are continuing to channel savings into domestic government bonds, with investments reaching record levels in early April and increasingly favouring UAH-denominated instruments, reported Ukraine Business News.

According to ICU, the total value of retail investments in domestic government bonds rose sharply, with UAH securities now accounting for more than 63% of portfolios. Since the beginning of the year, individual holdings have grown by UAH21.8bn ($550mn), or 19.5%, reaching nearly UAH134bn as of April 13.

The bulk of the increase has been driven by local-currency bonds, which expanded by UAH18.5bn, compared with a more modest UAH3.3bn rise in foreign-currency instruments. Analysts noted that part of the increase in foreign-currency holdings was linked to valuation effects following currency depreciation, rather than fresh inflows.

The shift has pushed the share of UAH-denominated bonds in retail portfolios up by more than four percentage points since the start of the year, reflecting growing investor confidence in local-currency assets despite ongoing economic uncertainty.

Demand has remained robust even as the Finance Ministry moved to cut yields, lowering rates by 120 basis points on one-year bonds and by 165 basis points on three-year securities. Market participants say the instruments still offer more attractive returns than bank deposits, helping sustain interest among households.

The population’s share of total government bonds in circulation is also approaching 10%, signalling a gradual deepening of domestic participation in public debt markets.