Government Securities Market

Liquidity

When the market is healthy, government bonds and equities can be tradable simultaneously on the same exchanges. When it comes to their salability, these bonds are comparable to other types of bank bonds.

Limitations of Government Securities Market

Investing in government bonds can be challenging for a variety of reasons, some of which are elaborated on here. Government bonds are not risk-free investments like other types of investments. In the following paragraphs, we will discuss the limitations of government securities market.

Almost Nothing Positive can be Said

Government bonds typically offer a lower rate of return and income to investors than other types of bonds, such as equities, real estate, and corporate bonds. This is especially true when earnings and interest rates offer by municipal bonds are considerable.

Trying to Predict the Future Direction of Interest Rates

• Government bonds of high grade with maturities between 5 and 40 years are one of the most prevalent types of assets held by individuals. Consequently, it is possible that the price of the bond will decline during this time.
• The relative attractiveness of an interest rate declines as inflation rises. Bonds with longer maturities are more susceptible to market risk and interest rate risk than those with shorter maturities. When the rate of return on an investment is low, the investor’s concerns increase.

The government securities market of Uzbekistan

UZBEKISTAN GOVERNMENT DEBT DATA

Показатель	Значение	Период
Государственный долг к ВВП	34,1 %	10.2022

HISTORY BY PUBLIC DEBT TO GDP (%)

External debt to GDP ratio

According to a World Bank study conducted in 2010, the values of public debt to GDP, exceeding 77%, are problematic for the country's economy. At the same time, state authorities independently set the maximum possible values of this indicator, which can be changed. For example, in European countries the limit of public debt to GDP is set at 60%.