National Bank gave brief description of GB market in February

/IRBIS, March 6, 01/ - National Bank of Kazakhstan, in its press-release devoted to preliminary February results, gave a characteristics of government bonds market in the country. Based on National Bank information, issue volume of the Ministry of Finance securities increased 2.8 times in February relative to previous month, at KZT5.3 bln. The proportion of instruments with 12 and more circulation term reached 96.3% (95.4% in January). The National Bank emphasized a successful launch of indexed three-year treasury bills (MEIKAM). At February 27, 2001 auction demand for these securities exceeded the supply 5.6 times, and floatation volume equaled KZT310 mln at 7.74% APR. General yield decline trend is continuing: effective yield of 3-month treasury bills decreased from 6.71 to 6.53%, and for 2-month - from 15.97 to 13.96%, for 3-year - from 17.56 to 15.56%, for National Bank notes - from 7.96 to 6.62%. To regulate excessive liquidity of the banks the National Bank issued short- term notes denominated in tenge for KZT14.5 bln (KZT5.1 bln in January). It is also said that the proportion of securities denominated in tenge in circulation increased by 1.4%, at KZT92.2 bln as of March 1, 01 (including those of the Ministry of Finance - increased by 6.6%, at KZT65.6 bln, National Bank notes decreased by 9.4%, at KZT26.6 bln), that of currency securities decreased 1.9 times, at KZT19.9 mln (about 4% of all government bonds of the Ministry of Finance in circulation).