September 2022 T-Bills issuance sees gov’t rake in GHS 8.11bn in debt
Government exceeded its T-bill issuance target of GHS 7.36 billion for the month of September as it raked in some GHS 8.11bn.
The GHS 8.11 billion was out of total bids of GHS 8.20 billion.
The 91-day, 182-day, and 364-day tenors cleared at 30.45% (+184 basis points, 31.57% (+163 basis points), and 31.55% (+202 basis points) as yields continued their uptrend throughout September 2022.
Last week, the Treasury raised GH¢999.86 million in the T-bill auction, accepting all bids.
The uptake exceeded the auction target of ¢905.00 million by 10.48%.
The yields on T-bills continued their northward trek, with the 91-day bill clearing at 30.45% and the 182-day bill going for 31.57%.
The weighted average yield of the 364-day bill was however 31.55%.
This week, the Treasury is seeking to raise GHS 1.176 billion across the 91-day to 182-day bills.
The expected amount raised will be used to refinance maturities worth GHS 1.092 billion.
On the bond market (secondary market), trading activity shot up to GHS 3.32 billion (+128.5%), with sell-side activity dominating trades.
The yield curve widened by an average of 101 basis points as a result.
Most trades occurred at the front to the belly of the yield curve, with 2022-2025 maturities accounting for 48.6% of total face traded while 49.7% of trades occurred along the 2026-2029 maturities.
“In the primary market, we expect investors to maintain interest in T-bills for frequently re-pricing benefits, as we do not expect a bond offer this week. Investors in the secondary market are likely to focus on trading at the front to the belly of the yield curve”, Databank Research said.
