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G&T Team
ResearchResearch Reports Regional Fixed Income Market Watch, June 2024

Regional Fixed Income Market Watch, June 2024

In June 2024, global fixed income markets saw moderate price volatility. In Developed Markets, yields generally fell during the month, with more profound declines in shorter-term securities (2-year US treasury and German bund yields declined by 11bps and 22bps, respectively). Meanwhile, corporate bonds saw smaller changes in yields. Importantly, yields on all segments of US and European fixed income markets remain elevated compared to the start of 2024.

In regional sovereign bond market, Kazakhstan, Georgia, and Armenia all saw slight increases in yields. In contrast, dynamics were mixed in Georgian corporate bond market, with GRAIL 28 experiencing a 20bps rise in yield and TBC PERP yield falling by 14.4bps.

Regional central banks
In June, National Bank of Ukraine and Central Bank of Armenia cut interest rates by 25bps and 50bps, respectively.

Georgia money market 
In June 2024, GEL 217.6mn treasury notes and GEL 40mn treasury bills were sold. Notably, interest rates increased month-over-month  for all instruments except for 6-month and 1-year T-bills. The weighted average interest rates were as follows: 10-year notes at 9.950%, 5-year notes at 9.631%, 2-year notes at 8.119%, 1-year instruments at 7.948%, and 6-month instruments at 7.988%.  The non-residents' treasury holdings decreased by 19.3% m/m to GEL 205.7mn in June 2024. Consequently, the share of non-residents in total outstanding treasury holdings dropped to 2.4%.