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G&T Team
ResearchResearch Reports Regional Fixed Income Market Watch, January 2023

Regional Fixed Income Market Watch, January 2023

Regional sovereign Eurobond market: Regional Eurobonds yields continued to tighten m/m in Jan-23.  GEORGIA 26 was the best performer of the month followed by KAZAKH 25, with yields tightening by 41.2bps and 25.8bps, respectively. TURKEY 26 was the worst performer of the month, with yield widening by 36.5bps. 

Georgian corporate Eurobond market: Among the Georgian corporate issuers,  GEOCAP 24 and Silknet 27 were the best performers in Jan-23, with yields decreasing by 136.0bps and 110.1bps, respectively. BOG 23 was the worst performer with 27.1bps m/m increase in yield.

FX market: During Jan-23,  Russian ruble (RUB),  Georgian lari (GEL) and Kazakh tenge (KZT) strengthened against US dollar by 5.4% m/m, 1.5% m/m and 0.5% m/m, respectively, while Turkish lira (TRY) and Armenian dram (AMD) lost 0.6% m/m and 0.2% m/m, respectively. 

Georgia money market: In Jan-23, GEL 193.3mn 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 8.812%, 5-year notes was 8.679%, on 2-year notes was 8.834%, on 1-year instrument was 9.414%, and it stood at 9.590% for 6-month instruments. Notably, non-residents’ treasury holdings increased by 20.3% m/m to GEL 342.7mn in Jan-23, after growing by 18.8% m/m in Dec-22 and the share of non-residents in total outstanding holdings stood at 5.1% (+1.0ppts m/m) in Jan-23.