Yields on T-bills Dropped to 5.5% (UPDATED)

Today (July 12) BSE held an auction on placement of short-term bonds (91-day), which showed a regular decrease in their profitability.

Total volume of deals was 10 million AZN. BSE reports that 8 investors submitted 16 bids, the total amount of which reached 41 million AZN. Investors expected yields up to 15%.

However, due to high demand, the minimum yield was 6.06% and the weighted average yield was 5.51% per annum.

Recall that at the previous auction, the weighted average yield was 6.8%.    --08D-

2016 July 12 (Tuesday) 15:01:08

Today, July 12 the Baku Stock Exchange will hold a new auction on placement of T-bills. At this time, the Ministry of Finance intends to place bonds with a total nominal value of 10 million AZN.

According to BSE, the maturity of the T-bills will be only 91 days. Last time (5 July), the yield on the 91-day bonds was 6.8% per annum.

The fall is due to the yield of T-bills with a relatively low level of inflation (10.5% yoy) and high liquidity in a number of banks. The need for public securities is many times greater than the supply. ----08D