Kazakhstan
Bonds of the Ministry of Finance of the Republic of Kazakhstan. Last week, the Ministry of Finance of the Republic of Kazakhstan placed three bond issues for a total of KZT27.8bn (KZT35bn in the previous week). The highest demand was for government securities with a maturity of 4 years, the yield on which amounted to 10.02% per annum. The yield on this issue of government securities a week earlier amounted to 9.90% per annum. The largest placement of KZT19.1bn was that issue. Demand exceeded supply by 136%.
Notes of the National Bank. On May 31, the National Bank held one auction of notes for a total amount of KZT227 bn with a yield of 8.99%.
On June 7 a meeting of the Monetary Policy Committee of the National Bank of the Republic of Kazakhstan was held, at which it was decided to keep the base rate at 9% with a symmetric interest band for liquidity management at 1%. High rates of internal inflation (our forecast for the end of the year is at least 7.0% yoy), stimulating fiscal policy and imports of external inflation, in our opinion, restrain the regulator from easing the current monetary conditions in the country. At the current meeting, the regulator highlighted that it does not even exclude a possibility of tightening of monetary conditions in the event that the dynamics of disinflationary processes in the country does not correspond to its forecasts.
The weekly net borrowing balance of the Ministry of Finance of Kazakhstan and the National Bank in the government securities market amounted to KZT14.6 bn.
On June 4, Kazakhstan Stability Fund JSC attracted KZT10 bn at KASE with an average weighted yield of 9.79% per annum and with maturity of 1 year. About 74.0% of the bonds was purchased by commercial banks and 25.1% -by other legal entities.
