Kazakhstan
Bonds of the Ministry of Finance of the Republic of Kazakhstan. Last week, the Ministry of Finance of the Republic of Kazakhstan placed 2 bond issues for a total of KZT16.5bn (KZT22.2bn in the previous week). The yield with a maturity of 4.2 years during the placement was 9.37%, practically unchanged since the end of February this year. Demand exceeded supply by almost two times. At the same time, the demand for long-term securities of the Ministry of Finance (14 years) was traditionally low, only 11% of the supply. It should be noted that this placement had the longest circulation period in the current year.
In the first two months of this year, the securities of the Ministry of Finances in circulation increased by almost 500 bn tenge from T9.5 to T10 tln. At the same time, the official plan of the Ministry of Finance for the issue of bonds was only for KZT275 bn for this period. In the absence of UAPF on the market, the entire issue is purchased by banks and other investors. According to the KASE in February commercial banks shared 73.8% (78.3% in January) of the primary market of government securities of the MFNon-residents in the primary offerings of the Ministry of Finance in February shared 5.1% (3.3% in January).
National Bank’s notes. Last week, the National Bank placed one 91-day issue of its notes of KZT272bn with a yield of 9.1292% (9.434% on February 3). Demand exceeded supply twice. The National Bank paid off 28-day and 91 days notes for a total amount of T753 bn. In February the short-term notes of the National Bank in circulation reached KZT3.7 tln compared to KZT2.9 tln at the end of 2020.
Corporate issuers' instruments. On Friday, Kazakhstan Housing Company JSC placed 5-year bonds in the amount of KZT15 bn. The YTM relative to the previous placement of bonds with the same circulation period (February 24, 2021) did not change and amounted to 11%.
The regional market
The Ministry of Finance of the Russian Federation placed OFZ-PD (with constant income) in the total amount of RUB 10 bn, with a maturity date of May 17, 2028 and a weighted average yield of 6.68% per annum. The yield on the previous OFZ-PD issue with the same maturity was 6.61% per annum.
On March 11, Russian Railways JSC placed eurobonds with a maturity of 7.5 years in the amount of RUB 20 bn with a yield of 7.45%. YTM of a similar issue in December 2020 with the same circulation period was 7.21% per annum.
Ukraine. Inflation jumped from 6.5% to 7.5%, which was above the NBU's expectations and pushed the NBU rate back into negative zone in real terms. The rise in food and fuel prices contributed the most to the index. The NBU expects inflationary pressure to persist for several months, until the second half of 2021. The OVDP yield curve has not yet reacted negatively to the latest inflation data, but the likelihood of further monetary tightening has increased.
On March 9, the Ministry of Finance of Georgia placed one-year Treasury bills in the amount of 15 mn lari ($4.5 mn) with a weighted average yield of 7.94% per annum, which coincided with the yield of the previous issue with a similar maturity.
