ОВГЗ yields: what Ukrainian government bonds pay
Two numbers describe what a bond pays: the coupon fixed at issuance and the yield to maturity, which depends on the price you pay. Confusing them is the most common mistake when comparing ОВГЗ.
Coupon vs yield to maturity
The coupon is the fixed annual interest as a percentage of the nominal — it never changes. Yield to maturity (YTM) is the total annual return if you buy at the current price and hold to redemption. Buy below nominal and your YTM is above the coupon; buy above nominal and it is below.
What hryvnia ОВГЗ typically pay
Coupons on UAH-denominated ОВГЗ have typically ranged around 14–19% per year — frequently above retail bank deposit rates. The exact level depends on the maturity and on where National Bank policy rates stand when the bond is issued.
Why UAH yields are high
High nominal yields compensate for hryvnia-specific risks: inflation and potential currency depreciation. That is also why dollar- and euro-denominated ОВГЗ pay much lower coupons — with an FX-denominated bond, the currency risk no longer sits with you.
Comparing with a bank deposit
Compare after tax. Deposit interest is taxed at 18% personal income tax plus the military levy, while ОВГЗ coupons are exempt from personal income tax with only the military levy applied. A bond and a deposit with the same headline rate are therefore not equivalent — the bond keeps more.
How to read the YTM in our catalog
For every bond we show an approximate yield to maturity computed at par price from the known payment schedule. Market prices move, so treat it as a comparison tool across bonds rather than a quote — your broker shows the live price and exact yield at the moment of purchase. Sort the catalog by YTM to see which maturities currently pay the most.