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G&T Team
ResearchResearch Reports Regional Fixed Income Market Watch, December 2022

Regional Fixed Income Market Watch, December 2022

Regional sovereign Eurobond market: Regional Eurobonds yields continued to tighten m/m in Dec-22. AZERB 24 was the best performer of the month, followed by GEORGIA 26, among regional sovereign Eurobonds, with yields tightening by 46.0bps and 36.4bps, respectively. TURKEY 26 was the worst performer of the month, with yield widening by 14.2bps. 

Georgian corporate Eurobond market: Among the Georgian corporate issuers,  GRAIL 28 and Silknet 27 were the best performers in Dec-22, with yields decreasing by 102.3bps and 53.9bps, respectively. BOG 23 was the worst performer with 17.0bps m/m increase in yield.

FX market: During Dec-22,  Kazakh tenge (KZT), Georgian lari (GEL), and  Armenian dram (AMD) strengthened against US dollar by 1.3% m/m, 0.4% m/m and 0.2% m/m, respectively, while Russian ruble (RUB) and Turkish lira (TRY) lost 21.2% m/m and 0.5% m/m, respectively. 

Georgia money market: In Dec-22, GEL 277.9mn treasury notes and GEL 50mn treasury bills were sold. Interest rates reduced further on all instruments m/m explained by high demand on government securities. Weighted average interest rate on 10-year notes was 8.929%, 5-year notes was 8.826%, on 2-year notes was 9.008%, on 1-year instrument was 9.452%, and it stood at 9.841% for 6-month instruments. Notably, in Dec-22 non-residents’ treasury holdings posted an increase for the first time  since Mar-22 growing by 18.8% m/m to GEL 284.8mn and the share of non-residents in total outstanding holdings stood at 4.2% (+0.5ppts m/m).