Regional Fixed Income Market Watch, February 2023
Regional sovereign Eurobond market: The most of the Regional Eurobonds yields widened m/m in Feb-23. Armenia 25 was the best performer of the month with the yield tightening 2.0bps, followed by AZERB 24 and KAZAKH 25 with the yields widening 1.3bps and 17.5bps, respectively. UZBEK 24 was the worst performer of the month, with yield widening by 68.4bps.
Georgian corporate Eurobond market: Among the Georgian corporate issuers, GEOCAP 24 and TBC perp were the best performers in Feb-23, with yields decreasing by 100.3bps and 42.2bps, respectively. TBC 24 was the worst performer with 9.3bps m/m increase in yield.
FX market: During Feb-23, Kazakh tenge (KZT), Georgian lari (GEL) and Armenian dram (AMD) strengthened against US dollar by 3.4% m/m, 1.6% m/m and 1.5% m/m, respectively, while Russian ruble (RUB) and Turkish lira (TRY) lost 6.9% m/m and 0.4% m/m, respectively.
Georgia money market: In Feb-23, GEL 201.4mn treasury notes and GEL 40mn 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 8.651%, 5-year notes was 8.635%, on 2-year notes was 8.699%, on 1-year instrument was 9.394%, and it stood at 9.477% for 6-month instruments. Notably, non-residents’ treasury holdings reduced by 12.2% m/m to GEL 300.8mn in Feb-23, after growing by 20.3% m/m in Jan-23 and the share of non-residents in total outstanding holdings stood at 4.6% (-0.5ppts m/m) in Feb-23.