Government Treasury Bills Market  

(April 2007) 

In April, the change in the composition of market participants was noted at the primary market of Government Treasury Bills (GTBs) as activities of some of its main participants reduced, including one of the largest investors that fully left the market, while activities of some other banks increased. At the same time, improvement of competition was noted in segments of 12-month, 18-month and 24-month GTBs, as a result of which, their yield reduced. Demand was comparatively lower in segments of 3-month and 6-month GTBs, which entailed some increase in their yield.  

Overall average weighted yield of bills reduced by 0.3 percentage points and was 6.6 percent during the month. 

The average weekly volume of filed bids to purchase GTBs reduced by 32.5 percent in the reporting period and amounted to Som 76.3 million. The sales volume, on average, insignificantly increased during the week, and totaled Som 35.2 million. In the general structure of sales, the share of long-term GTBs (18-month and 24-month GTBs) increased from 33.7 percent up to 34.1 percent than in the prior month.  

In April, the total volume of outstanding GTBs increased by 2.8 percent and amounted to Som 1465.0 million at the end of the month. Duration of bills reduced from 282 days in the prior period to 279 days. In April, net budget financing using GTBs amounted to Som 36.0 million, while, from the beginning of the year, this indicator totaled Som 184.4 million, having exceeded the indicator for similar period of the last year by almost 3 times.  

In the structure of GTBs holders, the share of commercial banks remained unchanged and was 97.9 percent. The share of resident legal entities increased by 0.1 percentage points up to 1.0 percent than in the prior month, and the share of resident individuals reduced to 1.1 percent. The number of banks holding government treasury bills reduced from 19 to 17. At the same time, the concentration index of the banking portfolio of GTBs increased from 0.19 to 0.20, which was equivalent to the presence of 5 banks with equal shares at the market and indicated high concentration.  

In April, at the secondary market of GTBs, one transaction on buying/selling GTBs was concluded among commercial banks amounting to Som 3.8 million, at the rate of 5.9 percent and with term of 333 days to maturity.