Weekly Bond Market Update | June 3, 2026

The Development Bank of Mongolia successfully issued a new 5-year, $500 million bond on the international market. Demand for the bond exceeded its total issuance size by 4.5 times, with orders surpassing $2.3 billion — signaling that international investors remain highly interested in acquiring high-yield emerging market debt instruments. JPM, HSBC, and ING served as underwriters.

The new bond is also expected to be included in the EMBI index, which would automatically bring in index-tracking funds as bondholders, potentially creating stable demand in the secondary market. In other words, this is good news for the expansion of the investor base

JPMorgan's "EMBI," or "Emerging Markets Bond Index" — of which the Development Bank of Mongolia is set to become a part — tracks and consolidates U.S. dollar-denominated bonds issued by emerging market governments and government-funded institutions.

The EMBI index has been highly volatile since the start of 2026 but has maintained an overall upward trend. It has fully recovered from its sharp decline in March and has recently been holding near its historic high, signaling strong investor confidence.

In the week when Mongolia's central bank announced its monetary policy decision, the country's government bond prices dipped slightly while yields rose. Long-term government bonds proved more resilient to short-term volatility, whereas bonds nearing maturity showed greater price fluctuations.

Over the past month, Mongolia's bond maturing in 2031 led in price gains, while the bond maturing in 2028 saw the largest decline, falling 1.25%.

For corporate and business entity bonds, overall bond prices ranged between 93 and 105, with yields ranging from 5.7% to 11%.