Government bonds as a tool for reducing investment risks and supporting social welfare and pension insurance in conditions of martial law and increased market volatility

Introduction. In the context of martial law, high market volatility, and macroeconomic uncertainty, domestic government bonds (OVDPs) have become a strategic financial instrument for Ukraine. Originally intended for public budget financing, OVDPs have evolved into a multifunctional mechanism for capital preservation, investment risk reduction, and support for critical state functions. The purpose of the paper is to substantiate the importance of OVDPs as a reliable instrument for minimizing investment risks during times of crisis, as well as to evaluate their contribution to supporting social welfare and macro-financial stability. Results. Based on data from the Ministry of Finance of Ukraine and the National Bank of Ukraine, the total volume of domestic government bonds increased by over 83% from February 2022 to July 2025. Hryvnia-denominated bonds demonstrated the most dynamic growth, increasing by nearly 89%, confirming their popularity among private and institutional investors due to high yields, tax exemptions, and state guarantees. Demand for foreign currency bonds remained stable, highlighting their role in portfolio diversification and currency risk hedging. This confirms that OVDPs fulfill not only fiscal but also social functions, acting as a form of financial patriotism and contributing to national resilience. Conclusion. The findings indicate that OVDPs serve a dual purpose: they offer financial security and stable returns for investors while enabling the government to maintain essential social programs during crisis conditions. Enhancing transparency, increasing financial literacy among the population, and digitizing investment procedures are also essential to expanding public participation in the OVDP market and ensuring its long-term effectiveness as a socially responsible financial instrument.