Regional Fixed Income Market Watch, April 2023
Regional sovereign Eurobond market: ARMENIA 25 and UZBEK 24 were the best performers of the month with yields tightening 19.5bps and 18.1bps, respectively. TURKEY 26 was the worst performer of the month, with the yield widening by 43.6bps.
Georgian corporate Eurobond market: Among the Georgian corporate issuers, BOG perp was the best performer in Apr-23, with yield decreasing by 8.1bps. GEOCAP 24 and GRAIL 28 were the worst performers with yields widening by 39.0bps and 6.1bps, respectively.
FX market: During Apr-23, Georgian lari (GEL), Kazakh tenge (KZT) and Armenian dram (AMD) strengthened against US dollar by 2.4% m/m, 0.8% m/m and 0.7% m/m, respectively, while Russian ruble (RUB) and Turkish lira (TRY) lost 2.8% m/m and 1.4% m/m, respectively.
Georgia money market: In Apr-23, GEL 200.6mn treasury notes and GEL 40mn treasury bills were sold. Interest rates slightly increased further on all instruments m/m (except 6 month T-bills). Weighted average interest rate on 10-year notes was 8.736%, 5-year notes was 8.726%, on 2-year notes was 8.617%, on 1-year instrument was 9.767%, and it came in at 9.378% for 6-month instruments. Notably, non-residents’ treasury holdings increased by 6.0% m/m to GEL 355.3mn in Apr-23, after a 5.0% m/m growth in Mar-23 and the share of non-residents in total outstanding holdings stood at 5.0% (+0.1ppts m/m) in Apr-23.