This article reviews and analyzes the development of the government debt securities market in Ukraine. The researchers aimed to reduce the credit risk of these securities by examining effective mechanisms for market development. They found that the financial stress index decreased due to reforms outlined in the financial sector development strategy. The analysis showed an increase in bond investments and a positive impact on bond deals. The use of Clearstream facilitated direct bond purchases by non-residents and expanded the investor base. State bonds dominated trading on the Ukrainian Exchange. The credit risk of government securities was rated as average with speculative characteristics. Recommendations were provided for managing securities risk effectively.