The sale of bonds decreased / a new signal for the stock market

According to Tejarat News, studies show that the sale of government bonds has decreased in the capital market, and according to experts, this issue can have a positive effect on the stock market.

In the last week, the government sold 166 billion and 704 million tomans worth of bonds in the capital market, and finally the government’s total income through bonds reached 26.5 hemats.

From the first working day of this year to the last week, more than 3236 units of Islamic financial bonds were traded in the market. Based on this, 96% of it, i.e. 3110 thousand billion Tomans, is related to open market operations and 1% is related to the sale of government bonds.

The total income of the government from August 12, 1400 to August 19, 1401 from the sale of bonds in the capital market is more than 99.5 thousand billion tomans. Part of this figure is related to the year 1400, and accordingly, in August of this year, 9.5 hemats, 16.1 hemats in September, 7.5 hemats in November, 9.2 hemats in December, 6.2 hemats in January. 9.5 hemats in Bahman, 15 hemats in March 1400 are also part of this year’s amount. 13.1 hemats in June, 9.6 hemats in July, 3.8 hemats until mid-August have been identified by the government.

Based on the statistics, it can be said that the sale of government bonds in the capital market has decreased in the past month compared to the months of July and June.

Reducing pressure on the stock market

Experts believe that the sale of government bonds is a contractionary policy. It can also cause recession by collecting money and liquidity from the markets. As a result, by reducing the acceleration of the growth of money and liquidity in the country’s economy, it can weaken the demand side, and in addition, by reducing the inflation fever, it can also reduce the high inflammation of the markets in Iran’s economy compared to the past.

On the other hand, some say that the sale of bonds is only a temporary salve for the deep wounds of the country’s economy. Despite the short-term effect, it is not a fundamental solution to reduce inflation, and again the markets will move on the same circuit as before in the medium term. It is also sometimes suggested that the volume of bonds is so small compared to other monetary variables and the growth of liquidity that the sale of government bonds cannot be considered very effective.

But in general, it can be said that the decrease in the sale of bonds can have a positive effect on the capital market, at least psychologically.