Regional Fixed Income Market Watch, October 2022

Regional sovereign Eurobond market: Regional Eurobonds yields tightened m/m in Oct-22. TURKEY 26 was the best performer of the month, followed by UZBEK 24, among regional sovereign Eurobonds, with yields tightening by 94.7bps and 47.8bps, respectively. GEORGIA 26 was the worst performer of the month, with yield widening by 17.4bps. 

Georgian corporate Eurobond market: Among the Georgian corporate issuers, BOG 23 was the best performer in Oct-22, with yield increasing by 23.8bps m/m. Other bonds yields also widened, with Silknet 27 being worst performer, posting 109.0bps increase in yield. 

FX market: During Oct-22, the most of regional currencies strengthened against US dollar. Armenian dram (AMD) was the best performer gaining 2.5% m/m, followed by  Kazakh tenge (KZT) and Georgian lari  (GEL), while the worst performer Russian ruble (RUB) lost 3.0%. 

Georgia money market:   In Oct-22, GEL 199.5mn treasury notes and GEL 50mn treasury bills were sold. Interest rates reduced on all instruments m/m explained by high demand on government securities. Weighted average interest rate on 10-year notes was 9.346%, 5-year notes was 9.236%, on 2-year notes was 9.423%, on 1-year instrument was 9.730%, and it stood at 9.973% for 6-month instruments. Notably, non-residents’ treasury holdings decreased by 12.7% m/m to GEL 267.9mn in Oct-22, after a 9.2% m/m reduction in Sep-22. As a result the share of non-residents in total outstanding holdings stood at 4.1% (-0.7ppts m/m) in Oct-22.