Demand for notes of Azerbaijan's Central Bank exceeds supply
By Trend
The Baku Stock Exchange held an auction on placement of short-term notes of Azerbaijan’s Central Bank (CBA) with maturity of 28 days, attracting 200 million manat ($117 million) from Azerbaijani banks, Trend reports referring to BSE.
According to the BSE, demand during the auction exceeded supply by more than 68.8 percent - 10 investors filed 19 bids for a total nominal amount of 337.7 million manat ($198.6 million). Price offers amounted to 99.477 manat ($58.5) with a yield to maturity (YTM) of 6.76 percent.
The cut-off price for competitive bids was set at 99.4773 manat ($58.5) with the YTM of 6.76 percent; the weighted average price was 99.4773 manat ($58.5) with the YTM of 6.76 percent. The volume of notes placed in the auction amounted to 200 million manat ($117 million).
The deadline for payment is June 17, 2020.
Short-term notes are a tool of monetary policy to regulate money supply in circulation. Only banks can obtain the notes.
(1 USD = 1.7 AZN on May 20)
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