National Bank of Kazakhstan gave brief characteristics to GS market in June 2003

/IRBIS, July 4, 03/ - Today National Bank of Kazakhstan distributed a press release which gave a brief characteristics to government securities (GS) in June of 2003. According to this information Ministry of Finance held two auctions on floatation of government securities totaling KZT3 bn. GS repayment, including interest, totaled KZT2.1bn. in June. Thus the volume of them in circulation igrew2.5% to KZT109.9 bn. Totally for the first half year of the current year issue volume of GS of the Ministry of finance totaled KZT6.9bn which is 3times lower than the level of the last year (KZT20.8 bn). During June the yield on issued GS significantly decreased: 2-year MEOKAM were offered with effective yield of 6.81% APR (in May 2003 - 7.11%), 3- year MEOKAM - 6.78% APR (7.12% APR). "Sharp decrease in issue of GS by the Ministry of finance, along with large purchases of foreign currency by the NBK leaded to the necessity in sterilization of redundant liquidity in the market", - it is said in the press release. Thus the NBK increased volumes of notes issue, and also repo operations. Volume of notes issue in June totaled KZT89.7 bn. Yield of notes decreased from decreased from 5.59% in May to 5.49% in June. Volume of notes in circulation to the end of June totaled KZT184.5 bn, having increased by 31.4% for the month and 2.9 times from the beginning of the year. From the beginning of the year issue volume of notes reached KZT336.3bn , which is 4.1 times higher than level of the corresponding priod of the last year. The NBK also informed that it would be possible to issue notes with 1 year circulation term in June. At present the longest notes are those of 273 days. In the repo market in June the volume of deals of the NBK on direct repo transactions grew 15.9%, having reached KZT47.3 bn. For the first half year the volume of transactions grew by 23.5% to KZT250.5bn. Starting from June01, 2003 the official rate on repo transactions was reduced to 5.0%. Volume of transactions of counter repo in June totaled KZT4.75bn, which is 23.4% larger than May's level. In addition in June the NBK registered one sale and one purchase of Ministry of Finance GS totaling KZT32.6m each. [2002-07-04]