NBKR Treasury Notes
(December 2008 )
In December on the primary NBKR notes market, the demand on the part of investors decreased. Thus, on all types of allocates notes, excluding 7-days notes, the demand rate was below the announced emission; this was due to the liquidity level decrease in the banking system and re-orientation of investors to more attractive markets. Herewith in the reporting months, three announced auctions on allocation of 91-days NBKR notes were conducted. The overall weighted average profitability rate of notes increased due to change in the structure of the NBKR notes sale.
The weighted average profitability rate on all types of notes within a month increased by 0.7 percentage points and 13.8 percent. At that the profitability rate of 7-day notes decreased by 0.2 percentage points and constituted 8.6 percent, of 14-day by 0.3 percentage points to 13.5 percent, 28-day by 0.1 percentage points to 15.3 percent, whereas the profitability rate of 91-day notes increased by 4.6 percentage points and constituted 18.8 percent.
The average weekly demand volume for the notes of the National Bank of the Kyrgyz republic in December constituted 640.5 million soms, having decreased by 3.5 percent in comparison with the previous month, whereas the volume of sales within a week increased by 14.3 percent and constituted 553.0 million soms.
The volume of the NBKR notes in circulation constituted 2340.2 million soms, having increased by 26.9 percent within a month. In the structure of notes holders, the share of commercial banks and institutional investors increased from 68.0 to 80.5 and 2.5 to 5.4 percent correspondingly. The shares of other market participants on the contrary decreased: legal entities – from 20.9 to 13.5 percent, resident individuals – from 8.5 to 0.6 percent. The number of commercial banks holding the NBKR notes increased 15 to 18 banks and the NBKR treasury notes portfolio concentrating index decreased to 0.13 percent that testifies an average concentration rate and is equal to the presence of seven banks on the market with equal shares.