In May, regional fixed income markets saw a general rise in yields. Bond prices fell in sovereign fixed income markets of Georgia, Turkey, and Kazakhstan. Meanwhile, ARMENIA 25 price increased, causing a 20.1bps yield reduction.
In Georgian corporate bond market, all Eurobonds saw a decline in price. SILKNET 27 and GRAIL 28 were most affected, with yield increasing by 52.9bps and 51.1bps, respectively.
Central banks
In May, the central banks of Georgia, Azerbaijan, and Kazakhstan have cut rates by 25bps each, with base interest rates now standing at 8.00%, 7.25%, and 14.50%, respectively.
Georgia money market
In May-24, GEL 216.8mn treasury notes and GEL 40mn treasury bills were sold. Notably, interest rates increased on all instruments m/m. The weighted average interest rate on 10-year notes was 9.058%, 5-year notes was 8.880%, on 2-year notes was 7.983%, on 1-year instrument was 8.063%, and it came in at 8.048% for 6-month instruments. Notably, non-residents’ treasury holdings decreased by 3.4% m/m to GEL 254.9mn (-4.5% m/m in Apr-24) and the share of non-residents in total outstanding holdings stood at 3.0% (flat m/m) in May-24.
