Galt & Taggart has today published its Regional Fixed Income Market Watch for September 2023. The report covers Regional sovereign Eurobond market, Georgian corporate Eurobond market, FX market and Georgia money market.
Regional sovereign Eurobond market: ARMENIA 25 was the best performer in Sep-23, with yield decreasing 27.4bps. Meanwhile, UZBEK 24 and AZERB 24 were the worst performers of the month, with the yields widening by 112.8bps and 97.4bps, respectively.
Georgian corporate Eurobond market: All Georgian corporate issuers enjoyed stable yields in September 2023, with yields changing within a narrow range of just +9/-6 basis points.
FX market: During Sep-23, all regional currencies weakened against US Dollar. The largest depreciations were recorded for the Kazakh tenge (KZT), Turkish lira (TRY) and Armenian Dram, depreciating by 4.3% m/m, 2.7% m/m and 2.5% m/m, respectively.
Georgia money market: In Sep-23, GEL 226.8mn treasury notes and GEL 40mn treasury bills were sold. Interest rates reduced on all instruments m/m (except for 1-year T-bills and 10-year notes). The weighted average interest rate on 10-year notes was 8.123%, on 5-year notes it was 8.264%, on 2-year notes it was 8.336%, and for 1-year instrument, it stood at 9.925%, while 6-month instrument had an interest rate of 9.463%. Notably, non-residents’ treasury holdings remained unchanged at GEL 355.5mn and the share of non-residents in total outstanding holdings stood at 4.6% (unchanged m/m) in Sep-23.
