Baku, Azerbaijan, May 23
By Fakhri Vakilov – Trend:
The prices of government bonds in Uzbekistan continue to show a positive trend (interest rates are correspondingly reduced) in both domestic and foreign financial markets, Trend reports with reference to the Ministry of Finance of Uzbekistan.
In particular, in April-May 2019, the prices of sovereign international bonds of Uzbekistan on the financial markets were trading at or above their nominal value, i.e. with a premium.
Furthermore, on May 21, prices for 5-year and 10-year sovereign international bonds of the country reached 101.723 percent and 102.025 percent of the nominal value, respectively (their yield decreased by 4.343 percent and 5.107 percent, respectively).
Prices and profitability of government securities have updated their record indicators in the domestic financial market.
In particular, in electronic trading on the primary placement of government securities for a period of 18 months, held on May 22, 2019 at the Uzbek Currency Exchange:
-the weighted average yield of GS amounted to 10.04 percent (the weighted average price of a bond was 106.45 percent 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.
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