Kazakhstan
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 KZT79bn (KZT53.7bn in the previous week). The yield on securities with a maturity of 2.8 years in the volume of KZT17.7bn formed at the level of 9.48% and 9.55% based on the results of two auctions within the same issue. The yield on 9-year bonds amounted to 10.26% with the placement volume of KZT61.1 bn. This auction is notable for the fact that non-bank financial institutions acquired 93% of the total placement volume. Most likely, the main part of these bonds of the Ministry of Finance was acquired by the UAPF, which was absent from the primary government securities market for about 6 months. In the investment position as of March 1, the UAPF showed a decrease in its deposits with the National Bank to KZT203bn compared to KZT490bn on February 1. This may be a sign of the gradual completion of the active phase of the program for transferring retirement funds by contributors for the purchase of housing and repayment of mortgage loans. In those placements of the Ministry of Finance bonds, where the main participants are banks, the yields continue to rise slightly (+7-8 bps).
National Bank Notes. The National Bank held one auction of notes worth KZT281bn with a yield of 8.99%. The ownership of notes by non-residents in absolute terms practically did not change and amounted to KZT565bn, but their relative share increased from 15.4% to 16.4% due to a slight decrease in the volume of securities in circulation. Usually, the reduction in the liquidity surplus of banks at the end of the month is associated with tax payments, and the degree of its reduction varies depending on the amount of taxes for the given period.
Today the Central Securities Depository of the Republic of Kazakhstan updated the data on financial instruments as of the beginning of April this year. According to the ministry's reporting, there is an increase in the nominal holding of government securities of the Republic of Kazakhstan by non-residents by KZT17.7bn in March to KZT799.7bn.
In March, annual inflation slowed down from 7.4% to 7%. The food sector is in the lead with 10.7% growth. Prices for non-food products and services increased by 5.6% and 3.7%, respectively.
