State Treasury Bills Market 

(August 2009) 

In August the Ministry of Finance reduced the volumes of the proposed emission of the state treasury bills, in particular 3- and 12-month STB, having increased the emission of the 6-mohth STB. At the same time the demand for the STB in the conditions of the high liquidity rate in commercial banks, despite the decrease, remained at rather high level and considerably exceeded the supply rate, as a result the STB profitability rate continued decreasing in all segments of the market. In general in August, the overall profitability rate on all types of STB decreased by 4.7 percent to 8.2 percent, including profitability rate of the 3-month STB decreased by 3.4 percentage points to 6.0 percent; the 6-month STB profitability rate decreased by 3.0 percentage points to 8.0 percent; the 12-month STB profitability rate decreased 5.4 percentage points to 8.7 percent. 

The average weekly demand volume for STB constituted 309.2 million soms, having decreased by 16.2 percent in comparison with July, whereas the sales volume decreased by 2.0 percent and constituted 100.0 million soms. In the structure of sales, the share of long-term bills (12-month STB) decreased to 65.0 percent. 

The volume of STB in circulation increased by 4.2 percent within the reporting month and constituted 3364.2 million soms by the end of August and the maturity of STB decreased in 2 days and constituted 181 days. The volume of net budget financing by means of STB in August constituted 134.1 million soms, from the beginning of the year – 471.8 million soms.  

In the structure of STB holders, the share of commercial banks increased by 1.3 percentage points to 77.7. At that the number of the banks, which are STB holders remained at the level of the previous month – 19. The bank portfolio concentration index for STB also remained unchanged and was left at the rate of 0.10, which testifies a low concentration level and is equal to the presence of ten banks with equal shares on the market. Shares of other investors decreased: institutional investors – from 5.4 to 4.7 percent; resident individuals – from 1.4 to 1.3 percent; and resident legal entities – from 16.8 to 16.2 percent. 

In August, on the secondary STB market, the STB purchase-sale bargains were not concluded.