Government to raise ¢1.98bn in T-bills to refinance maturities of ¢1.82bn

Government will raise ¢1.984 billion this week to refinance the upcoming Treasury bills maturities of ¢1.821 billion.

The primary auctions for Treasury bills have experienced increased investor demand due to their exemption from the Domestic Debt Exchange programme.

With continued robust demand, analysts expect T-bill yields to continue declining in the near term.

This will come as a positive development for government since interest costs will go down and ease the fiscal pressure on the government.

Last week, the government obtained a total of ¢3.15 billion from T-bills sale.

The uptake exceeded the auction target, surpassing the refinancing obligation by 44.46%.

The strong demand led to a decline in yields for the 91-day and 182-day tenors. The 91-day and 182- day bills cleared at 35.57% (-61 basis points week-on-week) and 36.53% (-0.20%), respectively, marking the first decline in T-bill yields since Jan 2022. However, the 364-day bill yield cleared higher at 36.19%.

Trading activity on bond market shoots up 51%

Meanwhile, trading activity on the Ghana Fixed Income Market sped up 51.30% week-on-week with a total market turnover of ¢3.07 billion.

This came as a result of the transfer of funds from pooled investor accounts to individual accounts.

Analysts do not expect actual trades on the secondary market as investors decide on the domestic debt exchange programme.