Accra-Ghana, Jan. 17, The Government of Ghana is expected to borrow ¢2.42 billion in Treasury bills to refinance the upcoming maturities of ¢2.22 billion in this week’s T-bill auction.
That’s 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.
This is coming after the government obtained ¢1.72 billion from the short-term securities, from a target of ¢1.125 billion last week.
The amount achieved 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 percent (-20 basis points) and 35.83 percent (-11 basis points). The 364-day yield, however, recorded an uptick to 35.92 percent (+2 basis points).
More than 85 percent of the bids tendered were from the 91-day T-bills as demand surged. 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.
Analysts expect T-bill yields to decline as an 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.
However, it will depend on a successful Domestic Debt Exchange programme.
