Kazakhstan
Bonds of the Ministry of Finance of the Republic of Kazakhstan.
Last week, the Ministry of Finance of the Republic of Kazakhstan placed four bond issues for a total of KZT135bn (KZT20bn in the previous week). The demand for 2-3 year government securities was expectedly high on the part of banks, while rates on 3-year bonds increased slightly. The yield on 7-year government securities remained at the same level of 10.4%, however, the shorter 6-year bonds were met at a slightly higher rate (10.47%) and this does not seem quite consistent from the side of the MOF.
Notes of the National Bank. The National Bank held two auctions for the placement of notes for a total of KZT541bn. The yield on 28-day and 182-day notes amounted to 9% and 9.14%, respectively.
In the period from May 6 to May 14, foreign investors increased the investments in NBK notes from T456bn to T512bn, and the share of ownership increased from 14.6% to 16.6%.
The liquidity surplus of the banking system of the Republic of Kazakhstan, after 4 months of stabilization at circa T5trln, began to grow again on May 6 and reached T5.7trln. As a rule, the growth of the liquidity surplus is associated with various programs of the National Bank for direct emission, financing of the economy in addition to the standard budget expenditures of the Government of the Republic of Kazakhstan. The surplus growth may also be associated with transfers from the National Fund, temporarily not covered by the sales of US dollars in the foreign exchange market.
