The government will raise ¢2.89 billion in Treasury bills this Friday February 24, 2022 to refinance T-bill maturities worth ¢2.65 billion.
The bills will be issued across the 91-day, 182-day and 364-day tenors.
Ahead of this, analysts expect investor demand to remain strong, leading to declining yields. Yields are expected to decline in the near term.
This is primarily so because the Treasury market is the only source of borrowing for government.
In the T-bill auction last week, the government mobilized ¢2.76 billion out of ¢3.11 billion as investor demand remains strong.
The uptake exceeded the auction target of ¢1.71 billion and the refinancing obligation.
In the previous T-bill auction, the 91-day and 182-day bill yields declined to 35.67% and 35.72% respectively.
The decline was mainly due to robust investor demand, which has supported a competitive bidding process.
With inflation expectations trending downwards and sustained strong investor demand, analysts anticipate a continued downward trend in T-bill yields.