MONGOLIAN GOVERNMENT BOND PRICES REBOUND SLIGHTLY AFTER POLITICAL UNCERTAINTY

Mongolian government bonds traded on international markets have shown a modest recovery following a sharp decline on May 23. The downturn was triggered by the Mongolian People's Party's (MPP) decision to expel the Democratic Party from the coalition government, announced during a conference on May 22.

By Wednesday, the 4.45 percent bond due July 2031, listed on the Singapore Exchange, emerged as the highest-yielding among Mongolia’s sovereign bonds. However, trading activity remained subdued for bonds with shorter maturities. The 5.1 percent Nomad bond, due in April 2027, recorded only a marginal increase of 0.1 percent.

The broader international bond market also experienced gains, with yields on 30-year Japanese and U.S. Treasury bonds falling significantly amid signals of policy adjustments and debt stabilization from the Japanese government.

Six USD-denominated Mongolian sovereign bonds are being actively traded. A large portion of these will mature by April 2026, raising expectations for increased refinancing activity. The 500 million USD, 3.5 percent coupon bond maturing in 2027 will require annual repayments between 2028 and 2031.

Resource: bloombergtv.mn