Government Treasury Bills Market  

(March 2007) 

In March the decreasing trend remained in the yield of bills at the primary market of GTBs due to the increase in demand on part of certain commercial banks. The decrease in yield was observed in all market segments as compared with the prior month, other than the 3-month GTBs on which the average monthly yield has not changed. At the same time, the most significant decrease in yield was noted in the segment of the 12-month GTBs. Overall for the month the total average weighted yield of GTBs reduced by 0.3 percentage points and accounted for 6.9 percent as compared with the prior period.  

At the same time, the volume of filed bids reduced by 11.1 percent and amounted to Som 113.0 million on average per week in March, and the average weekly sales volume has not practically changed and totaled Som 35.0 million. In the general sales structure the share of long-term GTBs (18-month and 24-month GTBs) decreased from 34.2 to 33.7 percent as compared with the prior month.  

In the reporting month the total volume of outstanding GTBs increased by 5.1 per cent and totaled Som 1425.0 million at the end of the month. The duration of bills reduced from 290 days in the prior period to 282 days. The amount of net budget financing using GTBs was Som 63.5 million in March, and from the beginning of the year this indicator amounted to Som 148.4 million, exceeding the indicator by almost 3.5 times for a similar period.  

In March there were insignificant changes in the structure of GTB holders: the share of commercial banks in comparison with the prior month increased by 0.1 percentage points to 97.9 percent, the share of resident legal entities reduced by 0.1 percentage points to 0.9 percent, and the share of resident natural persons remained at the same level of 1.2 percent. The number of banks holding government treasury bills reduced from 20 to 19 banks. At the same time, the concentration index of the banking portfolio of GTBs increased from 0.17 to 0.19 that is equivalent to the presence of 5 banks with equal shares at the market and indicates a high concentration.  

In March at the secondary market of GTBs one transaction for buying/selling GTBs was concluded among commercial banks for the amount of Som 7.5 million, at the rate of 6.6 percent and for the term of 340 days to maturity.