The government of Ghana will borrow ¢2.42 billion in Treasury bills to refinance the upcoming maturities of ¢2.22 billion in this week’s T-bill auction.
This will enable the government to meet the demands of matured treasury bills. That is according to its issuance calendar for the first quarter of this year. The securities that the government will be selling are the 91-day T-bill, the 182-day T-bill and the 364-day T-bill.
The amount achieved exceeded the auction target by 52.30%, surpassing the refinancing obligation. This comes after the government secured ¢1.72 billion from short-term securities, from an of ¢1.125 billion last week.
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The amount obtained exceeded the auction target by 52.30%, surpassing the refinancing obligation.
Due to competitive pricing of bids and robust investor demand, yields on the 91-day and 182-day tenors retreated to 35.46% (-20 basis points) and 35.83% (-11 basis points). The 364-day yield recorded an uptick to 35.92% (+2 basis points).
More than 85% of the bids tendered were from the 91-day T-bills as demand surged. The government accepted all the bids of about ¢1.47 billion. Again, the government accepted all the bids of ¢198.49 million tendered by the investors, largely banks.
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Analysts expect T-bill yields to decline as expected International Monetary Fund support programme in the first quarter of 2023 coupled with a stable outlook of the cedi may limit currency pass-through to inflation.
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