Fed continues cutting, more to come
The Federal Reserve delivered a 25bps rate cut in September, reducing the federal funds rate to 4.00%–4.25%. With economic data showing slower job growth and persistent inflation, more rate cuts (50bps) are expected by year-end. The Fed remains data-dependent, closely monitoring labor market trends and inflation to guide future decisions, signaling further easing if economic conditions warrant.
Regional markets
In regional sovereign Eurobond markets yields fluctuated over the month. Yield on Georgia’s Eurobond increased by 26bps to 6.54%. Notably, the spread has also widened by 43bp for the Georgia’s Eurobond. Contrary, Turkey’s yield fell to 4.14% (-38bps m/m), marking the second straight month of falling yield.
Georgian market
September 2025 was a busy month with 3 large issuances in Georgia – 2 local and 1 Eurobond.
Nikora issued GEL 60mn at TIBR3M + 3.5%, while Georgian Healthcare Group (GHG) issued GEL 350mn at Daily Non-Cumulative Compounded TIBR + 375 bps.
In Eurobond market, Silk Road Group Holding closed a notable transaction, issuing US$ 400mn at 7.50%.
