Government to borrow ¢12.7 billion in T-bills in January 2024

by Mawuli
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Source: newsthemegh.com

To pay maturing commitments, the government plans to issue GH¢12.7 billion in treasury bills in January 2024—a 1.2% drop from December 2023.

Expectations were already exceeded by the first auction of the year, which brought in GH¢3.223 billion, or 15.24 percent more than the target.

Given the strong demand, which averages GH¢4.0 billion each week, analysts expect the government to handle impending maturities with ease.

The overall bids reached GH¢16.3 billion in December 2023, exceeding the GH¢12.8 billion maturities. Despite this, the government accepted all tenders in order to address significant refinancing demands.

December 2023 showed a mixed yield environment as the rise in the Cash Reserve Ratio was offset by a downward pressure from disinflation.

The yields on the 91-day and 364-day periods dropped by 14 and 74 basis points, respectively, to settle at 29.4% and 32.5%.

On the other hand, the 182-day yield increased by 19 basis points to 31.9%.

Higher goals are anticipated in the future to help with the 2024 budget deficit and act as a safety net for the February coupon payments on restructured bonds.

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