The National Bank has offered banks notes worth 45 billion KGS with yields of up to 11.98 per cent

On 13 October, the National Bank of Kyrgyzstan held auctions to place short-term notes with a total bid volume of 45 billion KGS. The weighted average yield on seven-day notes was 11.85 per cent per annum, whilst that on 28-day notes was 11.98 per cent.

The bulk of the offering – 35 billion KGS, or almost 78 per cent of the total volume – consisted of seven-day notes. The regulator offered a further 10 billion KGS for placement over 28 days.

Both issues are dated 14 October. The seven-day notes are scheduled for redemption on 21 October, whilst the 28-day notes are due on 11 November 2026.

The yield spread between the two instruments was just 0.13 percentage points. Consequently, banks received only a small premium on the annual yield for placing funds for a longer term.

National Bank bills are one of the main instruments for regulating liquidity in the banking system. By investing temporarily available funds in these securities, commercial banks earn interest income, whilst the regulator withdraws part of the banking system’s liquidity from circulation for a specified period.