Business And Markets

Bond Market Sluggish

Bond Market Sluggish
Bond Market Sluggish

After two weeks of moderate success, the weekly bond auction, held by the Central Bank of Iran on behalf of the government, failed to attract buyers.
The government barely sold 7.3 trillion rials worth of bonds to banks, financial institutions and retail investors on Tuesday – down 61% compared to last week, according to data published on the CBI website.
Relatively better performance in the past two weeks had boosted hopes for financing the government budget deficit in a “noninflationary manner”. The government sold debt worth 105 trillion rials in the previous two auctions.
Main buyers this week were two banks that put in bids worth 6.4 trillion rials. Retail and institutional investors in the equity market contributed to 13% of the total purchase with 1.3 trillion rials, the lowest contribution in the past six weeks.


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