Currently four Mongolian government bonds are being traded on international markets. In 2018 the prices have declined by 4-6 percent. However it is still being traded above par. Overall, price movements indicate a rebalancing from when it increased due to the International Monetary Fund’s “Extended Fund Facility” 1st and 2nd review. For example, “Gerege” bond which was issued last year with a 5.625 percent rate decreased by 4 percent and reached USD 97.1. “Gerege” bond was issued during a difficult time to refinance “Chingis” and “Dim sum” bonds and according to plan the 5 year Chingis bond and the CNY denominated Dim Sum bonds were both paid this year. “Mazaalai” bond with the highest rate and nearest in maturity also declined by 4 percent since January. When Government expenses increased in 2016 and commodity prices took a fall, in order to finance the budget USD 500 million “Mazaalai” bond was issued in March 2016 with a maturity of 5 years and 10.875 percent rate. “Khuraldai” and “Chingis” bonds also declined in price. Main holders of Mongolian government bonds include “JPMorgan Chase”, “UBS”, and “Blackrock”. According to Bloomberg’s analysts investors interest in high yield developing country bonds are increasing. Especially bonds from countries with financing from donors such as IMF that has increased risk protection.

Source: BloombergTv.mn