Fixed Income Weekly: February 28 - March 06, 2022

On 9 March 2022, the National Bank of the Republic of Kazakhstan decided to keep the base rate at 13.5%, leaving it unchanged. In February 2022, annual inflation amounted to 8.7% (+0.2 pp since last month).
On 5 March 2022, S&P Global Ratings affirmed Kazakhstan’s sovereign credit rating at BBB-, Outlook - stable. This decision reflects the agency’s expectations that the governmental budget and balance of payments will remain stable in the next two years. S&P suggests that total international reserves of the country will be sufficient to mitigate effects of potential “macroeconomic instabilities arising from close political, financial and economic relations between Kazakhstan and Russia”.
Bonds of the Ministry of Finance of the Republic of Kazakhstan. Last week, the Ministry of Finance of the Republic of Kazakhstan placed two bond issues for a total of KZT48.2 bln (last week – two bond issues for a total of KZT56.7 bln). The 7-year bonds evidenced the strongest demand of 98% vs supply and the bonds’ yield amounted to 13.21%. Yield on 15-year bonds amounted to 12.91% (last week’s issue – KZT30.7 bln with a yield of 11.10%).
According to Central Securities Depository (KACD), as of end of February, share of governmental securities held by foreign investors grew 4.3% mom (-4.8% YTD) and amounted to KZT567 bln.
Notes of the National Bank of the Republic of Kazakhstan. On 28 February 2022, an auction for 28-day notes placement was held in the amount of KZT69.5 bln with a yield of 13.2432% (previous week – yield of 10.232% on a placement in the amount of KZT180.7 bln). On 4 March, another auction for 28-day notes placement was held in the amount of KZT115.2 bln with a yield of 13.4494%.
Corporate issuers. During the period of 28 February – 4 March 2022, there were no securities issued by corporations.