Kazakh yield curve: July 2012

After a spike in June, the short end of the curve returned to where it has been almost every month of the past three years. Active sell-orders continued to outnumber buy-orders in number and volume. The number of transactions declined by 42% and interest rate volatility fell by roughly a half, both likely due to low activity during the holiday season.

The share of outstanding long-term securities continued to increase. The share of short-term securities decreased from 50% in March 2011 to 19% in July 2012. In April Minfin further lengthened the maturity of government debt in circulation by placing T15bn worth of 20-year fixed-coupon bonds. The issue was snatched up by the pension funds with little impact on the rates.