Market Of The State Treasury Bills 

(October 2009) 

In October the Ministry of Finance owing to the introduction of the new financing instrument of the current budget deficit reduced the volumes of weekly distribution of 6- and 12-month STB, keeping the scope of the proposed emission of 3-month bills at the previous month level. At the same time in conditions of the increased level of excess reserve in commercial banks the demand for STB increased, significantly exceeding the scope of supply which was reflected in the further decrease of earning power at all segments of the given market. In the whole, within a month the overall earning power on all types of STB decreased by 1.0 percent and made 4.3 percent.  

On the average within a week the scope of demand for treasury bills made 178.8 million som having decreased by 5.8 percent against the indicator in September, which was connected with the increase of the number of auctions in October, the average auction scope of sales decreased by 16.4 percent, up to 70.5 million som. At that in the structure of sales the share of long term bills (12-month STB) reduced by 46.1 percent. 

The STBills amount in circulation decreased by 2.7 percent within a month making 3295.1 million som by the end of October. Maturity of STB reduced from 185 to 181 days, net budget financing for account of STB within a month made (-58,2) million som, from the beginning of the year – 467.0 million som.  

In the structure of STB holders the share of commercial banks within the month increased by 13.2 percentage points, up to 92.0 percent. In this connection the number of banks-holders of state treasury bills decreased by 1 bank and made in total 19; concentration index of the bank STB portfolio increased by 0.12, which demonstrates the average level of concentration and equals to the presence of nine banks with equal shares in the market. Also the share of institutional investors increased from 4.1 to 5.4 percent and the share of other investors reduced: resident individuals – from 1.1 to 0.9 percent and resident entities – from 16.1 to 1.7 percent.  

At the secondary market of STBills in October any transaction on purchase-sale of STB were entered.