According to Georgia Capital, interest rates on government securities decreased MoM in February 2020.
The yield on 5-year bond went down to 9.01% (-0.17pp MoM), that for a 2-year bond fell to 9.04% (-0.27pp MOM), while the yield for 1-year bond stood at 8.89% (-0.19pp MoM).
Similar tendency continued in the beginning of March as well, when the yields on 2Y T-bills retreated to 8.84% (-0.17pp compared to the previous auction on February 25, 2020).
Declining rates on government securities may be reflecting the expectation of some monetary policy easing in 2020 as well as increased demand, also on the back of higher appetite from non-residents.
