Fixed Income Weekly: May 24 - May 30, 2021

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 KZT35bn (KZT135bn in the previous week). The rates hardly changed, while, as before, securities with maturities of up to 5 years were in a larger demand. 4-year government securities have not been issued since March of this year, when market rates were significantly lower, therefore, the increase in the placement rate compared to the previous issue was significant.

Notes of the National Bank. The National Bank held one auction for the placement of notes for a total amount of KZT414 bn with a yield of 8.99 %.

In the period from May 14 to 21, foreign investors increased the holdings of the NBK notes from KZT512 bn to KZT539 bn, and the share in the total volume of notes in circulation increased from 16.6 % to 16.8%.

The liquidity surplus of the banking system of the Republic of Kazakhstan decreased from a maximum value of T5.7 trln to T5.5 trln, which is probably due to tax payments. Nevertheless, there is a general increase in the volume of liquidity surplus in the banking system of the Republic of Kazakhstan. If its changes until mid-May of this year were observed in the range of T4.5-5.5 trln, now the range of changes of liquidity surplus will expectedly shift to the level of T5-6 trln.