GCB Capital Research forecasts GHS 2.59bn T-bill auction with a 34.89% weekly decline
In an insightful projection, GCB Capital Research reveals that the upcoming Treasury bill (T-bill) auction, scheduled for Friday, December 22, 2023, is set to pursue a gross issuance target of GH¢2.59 billion, marking a notable 34.89% decline week-on-week. This strategic move aims to refinance imminent maturities estimated at GH¢2.42 billion across the 91-day to 364-day bills.
As the market navigates the festive season with an anticipated uptick in cash preference, GCB Capital Research suggests that investor demand may resiliently hold firm at the auction, potentially exerting further downward pressure on yields. This scenario unfolds against a backdrop of improving inflation expectations.
However, the expected yield decline is poised to be gradual and marginal, driven by investors’ steadfast pursuit of positive real returns. The delicate balancing act between cash preferences and yield expectations underscores the nuanced dynamics at play in the lead-up to this critical year-end T-bill auction.
In a financial landscape shaped by year-end considerations and evolving market sentiment, the anticipated adjustment in yields beckons a closer examination of investor behavior, signaling potential shifts in the pursuit of returns amidst prevailing economic conditions.
