State Treasury Bills Market  

(July 2009) 

In July, the Ministry of Finance has slightly reduced the total volume of State Treasury Bills weekly supply in the primary STB market, as compared to the previous month, having increased the volume of 12-month STB emission and having decreased the volume of 3- and 6-month STB emission. Meanwhile, the demand for STB on the part of investors was at a high level and notably exceeded the supply. This resulted in STB yield decrease in all market segments. Generally for this month, the total yield of all types of STB has mounted to 12.9 percent, having decreased by 3.9 pp. Alongside with this, the yield of 3-month STB has decreased by 4.1 pp and reached 9.4 percent, the yield of 6-month STB – by 4.1 pp and made 11.0 percent and the yield of 12-month STB – by 4.4 pp and amounted to 14.1 percent. 

The average weekly volume of demand for STB has increased by 5.6 percent and made KGS 369.0 Million, as compared to June. The average weekly sales volume has decreased by 19.0 percent and amounted to KGS 102.0 Million. The share of long-term (12-month STB) bills in the structure of sales has increased by 70.6 percent. 

* Due to acceptance of the Kyrgyz Republic Government Resolution No.556, dated October 2, 2008 “On approval of the Provision on issuance, 

allocation, circulation and repayment of the KyrgyzRepublic governmental securities”, the issuance of such bills has been cancelled from October 23, 2008. 

The volume of bills in the circulation has amounted to KGS 3228.4 Million as of the end of July, having increased by 2.4 percent within the month. Maturity of STB has amounted to 183 days, having increased by 2 days. The amount of the net budget financing by STB means made KGS 59.3 Million over the month, from the beginning of the year – KGS 337.7 Million.  

The share of commercial banks in the structure of STB holders has decreased from 90.1 to 76.4 percent. Meanwhile, the number of banks holding the State Treasury Bills has increased from 18 to 19. The bank portfolio concentration index for STB has decreased from 0.16 to 0.10; this indicates the low level of concentration and is equivalent to the presence of eleven banks with equal shares in the market. The shares of institutional investors have also decreased from 6.5 to 5.4 percent and the shares of resident individuals – from 1.6 to 1.4 percent. Meanwhile, the share of resident legal persons has notably increased from 1.9 to 16.8 percent.  

In July, STB purchase/sales transactions were not conducted in the secondary STB market.