NBKR Notes 

(May 2008) 

In May, the demand for NBKR notes in the primary market continued to go down. Single auction on the placement of 14-day notes and two out of the four announced actions on 28-day notes were announced unaccomplished due to the high volatility of profits. In addition, all the announced actions on the allocation of 91-day and 182-day notes were acknowledged unaccomplished. As a result, during the reporting month occurred the increase in the profitability of 14-day and 28-day NBKR notes. On the whole, over the reporting month the weighted average monthly yield for all types of notes amounted to 9.3 per cent, having increased by 1.6 pp. The yield of 14-day NBKR notes has increased by 1.9 pp and amounted to9.2%, and the yield of 28-day NBKR notes has gone up by 1.3 pp up to 9.5 per cent.  

In the reported month, the average weekly volume of demand for the NBKR notes has reached KGS 183.1 million, having reduced by 17.3 per cent, and the average volume of sales went down by 13.2 per cent and amounted to KGS 178.2 million.  

Over the month, the volume of NBKR notes in circulation has increased by 43.2 per cent and made KGS 681.4 million. The share of commercial banks within the structure of the notes holders has increased from 94.7 per cent to 97.9 per cent, while the share of resident legal entities has gone down from 4.8 per cent to 1.7 per cent. The share of resident individuals also reduced (from 0.5 per cent to 0.4 per cent). The number of commercial banks holding NBKR notes remained at the same level of 15, while the NBKR treasury notes portfolio concentration index has increased from 0.11 to 0.15, which indicated the average level of concentration and was equivalent to the presence of seven market players in the market with equal market shares.