Regional Fixed Income Market Watch, May 2023
Regional sovereign Eurobond market: KAZAKH 25 and UZBEK 24 were the best performers in May-23, with yields increasing only by 3.5bps and 4.9bps, respectively. Meanwhile, TURKEY 26 was the worst performer of the month, with the yield widening by 92.8bps.
Georgian corporate Eurobond market: Among the Georgian corporate issuers, TBC 24 and Silknet 27 were the best performers in May-23, with yields decreasing by 9.5bps and 1.1bps, respectively. BOG 23 was the worst performer with yield widening by 79.4bps.
FX market: During May-23, Kazakh tenge (KZT) and Armenian dram (AMD) strengthened against US dollar by 1.0% m/m and 0.1% m/m, respectively, while, Russian ruble (RUB), Georgian lari (GEL) and Turkish lira (TRY) lost 1.7% m/m, 4.8% m/m and 6.7% m/m, respectively.
Georgia money market: In May-23, GEL 200.7mn treasury notes and GEL 40mn treasury bills were sold. Interest rates reduced on all instruments m/m (except 6-month T-bills and 2-year benchmark bonds). Weighted average interest rate on 10-year notes was 8.327%, 5-year notes was 8.635%, on 2-year notes was 8.655%, on 1-year instrument was 9.566%, and it came in at 9.488% for 6-month instruments. Notably, non-residents’ treasury holdings remained flat m/m to GEL 355.3mn in May-23, after a 6.0% m/m growth in Apr-23 and the share of non-residents in total outstanding holdings stood at 4.9% (-0.1ppts m/m) in May-23.