Baku Stock Exchange auctions CBA's notes

By Trend

The Baku Stock Exchange (BSE) held an auction on the placement of short-term notes of the Central Bank of Azerbaijan (CBA) in the amount of 200 million manat ($117.6 million) on November 18, 2020, Trend reports citing the BSE.

The term of maturity is 28 days.

During the auction, 14 investors filed 24 bids in the price range from 99.5 manat ($58.52) with a yield to maturity (YTM) of 6.49 percent to 99.53 manat ($58.54) with a YTM of 6.01 percent.

According to the decision of the CBA, the cut-off price of bonds amounted to 99.53 manat with the YTM of 6.01 percent, and the weighted average price - 99.53 manat (6.01 percent). The total amount of orders at nominal prices amounted to 693.9 million manat ($408.1 million).

The maturity date is December 16, 2020.

Short-term notes are a monetary policy tool for regulating the money supply in circulation. Only banks can buy notes.

(1 USD = 1.7 manat on Nov. 18)