On April 16, 2025, the Government of Mongolia successfully conducted a primary market auction for domestic government securities. The issuance was carried out in accordance with Article 12.1.3 of the Law on Debt Management, which aims to support the development of the domestic government securities market. The auction attracted strong demand, with total orders reaching MNT 43.7 billion, representing an oversubscription of 4.4 times. Participants included banks, insurance companies, securities firms, as well as both foreign and domestic individual investors. The six-month discounted bonds were priced at a weighted average yield of 9.466 percent, while the two-year coupon bonds were priced at 10.477 percent. The issuance amount for each bond was MNT 5 billion. According to the government securities issuance plan, MNT 5 billion worth of short-term and MNT 5 billion worth of medium-term securities will be issued biweekly throughout the second quarter of 2025, totaling MNT 60 billion. The Government of Mongolia will continue to issue short- and medium-term securities on a regular basis to promote the development of the domestic government bond market and to establish a yield curve for tugrik-denominated securities. Government securities offer several advantages for investors: they are risk-free, highly liquid, and the interest income is exempt from income tax. Furthermore, in accordance with the Law on Procurement of Goods, Works, and Services with State and Local Property, legal entities may use government securities as guarantees for performance and advance payments. The result of the Treasury bond auction, please see HERE.