Yerevan /Mediamax/. On June 22-26, in Armenia constant increase was registered on both correspondent accounts of banks (reaching from 25 870mln to 35 968mln) and the AMD base (reaching from 399 490mln to 412 339mln).

Mediamax was informed in “Renesa” Investment Company that this fact could not but directly affect increase of demand and decrease of interest rates at auctions of state bonds’ primary placement.

“In this period, two placement auctions took place, during which unprecedented demand was registered. In particular, following the results of short-term bonds’ placement auction, demand (volume of presented applications) exceeded offer 4.5 times, and following the results of medium-term bonds’ placement, demand exceeded offer 3.5 times”, “Renesa” informed.

The Investment Company noted that within this week, in accordance with the placement program of the Ministry of Finance, an auction will take place on primary placement of short-term bonds, during which high level of demand will be preserved, and the interest rate will fall even more and will fluctuate within the range of 9.5%-10%.

“Renesa” also expects that in the same period, the price/interest rates of bonds for the repayment term of up to one year will fall approximately 1%, and the interest rate on bonds for the repayment term of 3-5 years will decrease approximately 0.5% in the secondary market of state bonds.

In late July, relative stirring up was observed in the market of corporate bonds, the fact being characteristic of the month end. The total volume of deals exceeded over twofold the volume of the previous week, making 340mln 564 thousand AMD.

Yield increase was observed in all deals, concluded in late June. Relatively significant growth was observed in deals with “Converse Bank” bonds (0.86 percentage points) and “HSBC Bank Armenia” bonds (0.75 percentage points).

The most significant yield growth last week was registered in deals with VALTB2 bonds of “Valletta” LLC (1.1021 percentage points), the fact probably being conditioned by the third payment of coupons for the given bonds, which was realized on June 29. “Armswissbank” acted as clearing bank.

By the way, the same day information appeared on termination of “Armswissbank” status of “Valletta” bonds’ market maker (VALTB2 и VALTB3). It is known that termination of the market maker’s status was met basing on the corresponding request of “Armswissbank”, the reasons for which are not known yet.

Touching upon the Armenian foreign currency market, “Renesa” noted that from 22 to 26 of June, the currency exchange rate at the Stock Exchange fell 2.5 points.

“After long inertia at the Stock Exchange, especially notable is the trades’ volume; on June 23, it made $17.63mln”, the Investment Company noted, expressing opinion that the current USD exchange rate will remain the same during the week and will not sink below the level of 360 AMD.-