Prices of international and domestic government bonds continue to rise
Tashkent, Uzbekistan (UzDaily.com) - Prices for government bonds continue to show a positive trend (interest rates are correspondingly reduced) in both domestic and foreign financial markets.
In particular, in April-May 2019, the prices of sovereign international bonds of the Republic of Uzbekistan on financial markets were trading at or above their nominal value, i.e. with a premium.
At the same time, on 21 May, prices for 5-year and 10-year sovereign international bonds of our republic reached, respectively, 101.723% and 102.025% of the nominal value (their yield decreased, respectively, 4.343% and 5.107%).
Prices and profitability of government securities have updated their record indicators in the domestic financial market.
In particular, in electronic trading on the initial public offering of government securities for a period of 18 months.
On 22 May 2019 at the Uzbek Republican Currency Exchange:
- the weighted average yield of government securities was 10.04% (the weighted average price of a bond was 106.45% of its nominal value);
- the number of active bids for the purchase of government securities at the end of auctions was almost 3 times higher than their offer.
The results of trading on the domestic financial market confirm the high demand for diversified financial instruments with minimal risk and strengthen the confidence of financial market participants in government securities as a reliable and liquid investment instrument.
Taking into account the shown interest of investors, including foreign ones, the Ministry of Finance will continue to diversify terms and volumes of government securities, taking into account the preferences of financial market participants.
At the same time, issues of government securities will be carried out in close coordination with the Central Bank based on the objectives of effective management of domestic public debt, taking into account market conditions.