NBKR Treasury Notes 

(June 2007) 

In June 2007, the NBKR treasury notes market saw a considerable growth in demand from the commercial banks. All scheduled auctions have been conducted in June (only three auctions out of ten scheduled were recognized as completed in May). This resulted in the yield decrease in both market segments of NBKR Treasury Notes. Thus, a weighed average yield of 28-day bills was down 0.6% and registered at 4.0%, while the yield for 14-day bills was down 0.2% and made 3.1%. An overall weighed average yield for NBKR Treasury Notes was down 0.2% at 3.5%.  

The weekly level of demand for NBKR Treasury Notes, based on successful auctions, grew on average by 79.8% to be KGS 100.3 mln, while the weekly average sales volume also grew by 33.3% to make KGS 32.0 mln. 

A volume of NBKR Treasury Notes in circulation increased 3 times and made KGS 96.0 mln. A number of NBKR Treasury Notes holders increased from 3 to 7 banks, and the bank portfolio holding index for the Notes went down from 0.47 to 0.20, which was equivalent to having 5 market players with equal market shares. This is an evidence of the high level of concentration.