Prices of government securities grow in Kazakhstan together with currency rate

/REUTERS, Almaty, Oljas Auezov, July 17, 03/ - Prices of Kazakhstan government securities - bonds of the Ministry of finance and notes of the National Bank - went on growing that was caused by strengthening of tenge relative to dollar and by surplus of funds in banks and pension funds, traders say. Prices of Kazakhstan eurobonds, on the contrary, fall together with pries of US treasury securities. On Monday Ministry of finance of Kazakhstan offered two-year bonds (МЕОКАМ) for KZT2.3 bn. with the yield of 5.98% APR. At the previous auction on July 2 yield of similar securities equaled to 6.00% APR. Yield of the National Bank's notes, according to traders' words, also continues to fall. "Notes become more expensive, and МЕОКАМ - is a mockery", - complained a trader of a domestic pension assets management company (PAMC). "The market is overheated. Pressure of the falling dollar is felt ", - said dealer of bank CenterCredit Gabiden Balgimbekov. Rate of tenge relative to dollar is almost constantly strengthening since the beginning of the year that makes investments into dollar instruments unprofitable, whereas tenge securities in this year were issued, excluding some exceptions, only by the National Bank. At the same time, traders note the increased activity of the Ministry of finance, which, in their opinion, may cool the overheated market. During the first four months of 2003 Ministry of finance did not issue bonds, and in May-June just seldom came to the market. "Ministry of finance, thank goodness, appears once a week already, - said Balgimbekov from bank CenterCredit. - If it comes as seldom as now tha market will cool down". Corproate eurobonds of Kazakhstan issuers, according to traders' words, go on cheapening together with treasury bonds of the USA. "All Kazakhstan and Russian bonds are strongly tied to US Treasuries. Their prices fell down, and spread remained on the same level", - said Balgimbekov from bank CenterCredit. [2003-07-17]