Market of State Treasury Bills 

(December, 2009) 

In December, the volume of weekly STB supply remained unchanged, whereas the demand for STB increased, especially for 3-month STB. In the segments of 6- and 12-month STB, the demand remained rather high, however due to re-orientation of one of the main investors at another segment of the market with more attractive profitability as well as due to demand decrease on the part of individual active investors, profitability rate of these bills continued increasing. At that during the third arranged auction on allocation of 12-month STB, the demand was lower than the announced supply volume, as a result their profitability increased by 1.7 percentage points. And the last auction on allocation of 3-month STB was disqualified by the issuer due to high volatility of profitability rate. In general within the reporting month, the weighted average STB profitability increased by 1.8 percentage points and constituted 6.4 percent.  

The volume of filed applications for STB on average per week increased almost twofold and amounted to 172.2 million soms, whereas the average auction volume of sales increased by 19.3 percent up to 81.2 million soms. At the same time in the structure of sales, the share of long-term bills (12-month STB) amounted to 72.9 percent, having increased by 7.9 percentage points 

During the reporting month, the volume of STB in circulation increased by 2.2 percent and constituted 3376.1 by the end of the year. Duration of STB decreased by 4 days and constituted 175 days. Net financing of the budget on account of STB constituted 79.5 million soms within the reporting month (from the beginning of the year 578.8 million soms).  

In the structure of STB holders, the share of commercial banks decreased by 0.8 percentage points and constituted 90.3 percent; the number of banks, STB-holders increased by 1 bank and amounted to 19. Concentration index of the bank portfolio of STB remained unchanged (0.12), which indicates the average level of concentration and is equivalent to presence of eight banks with equal shares the market. The share of institutional investors increased by 1.0 percentage points amounting to 7.8 percent and the share of other investors decreased: resident individuals - by 0.1 percentage points amounting to 0.7 per cent and resident legal entities - by 0.1 percentage points amounting to 1.2 percent.