NBKR Treasury Notes
(September 2009)
On September the demand a little bit decreased in the primary market of the NBKR notes. Thus, in the first week on all segments of the market the demand on the part of investors was lower than the announced emission volume, whereas in the segment of 7-day notes due to re-orientation of investors to other markets (with higher profitability rate), in all auctions the demand was lower that the announced supply volume. Only in the second week there was a certain increase in the demand. Moreover during the last auction, in the segment of 28-day notes the demand was lower than the announced emission volume. In the conditions of continuing decrease in the inflation growth rates, the National Bank of the Kyrgyz Republic reduced the volumes of weekly emission of the NBKR notes. As a result in the reporting period there were fluctuations of the 7-day NBKR notes profitability rate and decrease of profitability rate in other segments of the NBKR notes market. In general in September, the overall profitability rate on all types of the NBKR decreased by 1.3 percentage points and constituted 3.3 percent, including profitability rate of the 7-day notes decreased by 1.0 percentage points to 2.8 percent; profitability rate of the 14-day notes decreased by 1.4 percentage points to 3.3 percent; profitability rate of the 28-day notes decreased by 1.6 percentage points to 3.4 percent. Auctions on allocation of 91- and 182-notes were not performed.
In September, the average weekly sales volume for the notes of the National Bank of the Kyrgyz Republic constituted 355.3 million soms, having decreased by 25.5 percent in comparison with the previous month, whereas the weekly demand volume decreased by 27.3 percent and constituted 542.7 million soms.
The volume of the NBKR notes in circulation constituted 984.0 million soms by the end of September, having decreased by 18.0 percent within the reporting month. In the structure of notes holders, the share of commercial banks in the total volume of the NBKR notes in circulation increased from 82.9 to 98.4 percent. At that the number of banks – the NBKR notes holders increased from 12 to 14 banks and the banking portfolio concentration index remained at the level of 0.12 that testifies an average concentration rate and is equal to the presence of eight banks on the market with equal shares. The shares of other investors increased from 0.9 to 1.3 percent; the share of resident individuals increased from 0 to 2.2 and the resident legal entities did not purchase the NBKR notes in September.