Weekly Bond Market Update | August 14, 2026

Tsetsens Mining and Energy LLC (TME) have successfully raised an additional $100 million through a tap issuance of its $300 million bond issued in the international market earlier in 2026. The new issuance was 3.3 times oversubscribed, highlighting strong investor demand.

The terms and pricing of the new issuance have not yet been disclosed. Moody’s has assigned a B2 credit rating with a stable outlook to TME’s existing $300 million bond.

TME bond details

The Bank of Mongolia raised its policy rate by 50bps to 12.5% following an extraordinary meeting of the Monetary Policy Committee. The rate had been held at 12% across six consecutive meetings since the last hike in March of 2025.

July CPI came in at 13%, driven heavily by food and fuel prices, well above the central bank’s target range midpoint. Geopolitical context was also cited as a contributing factor in the statement. The off-cycle nature of the meeting signals the MPC viewed the latest inflation data as requiring an urgent response rather than waiting for the next scheduled meeting.

Mongolia’s sovereign USD bond yields are once again approaching their highest levels since the beginning of the year. In other words, after declining sharply since August last year, the government’s bond prices have gradually retraced their losses, bringing yields closer to their 2026 highs.

Bonds maturing in 2030 and 2031 have experienced the highest yield volatility. As shown in the chart, Mongolia’s sovereign USD bonds appear to be undergoing a “V-shaped” recovery. On average, Mongolia’s sovereign bonds are now just 75 basis points, or 0.75 percentage points, below their one-year yield highs.