T-bills: Government borrows GHS 7bn through short-term debt security in the month of August
Government, through the Finance Ministry, borrowed a total amount of GHS 7.148 billion through the sale of 91, 182 and 364 days Treasury bills in the month of August.
Gvernment, in the said month, was hoping to borrow some GHS 5.117 billion to largely refinance maturing debts. However, rising interest rates on the T-bills increased investors’ interest leading to government exceeding its GHS 5.117 billion target.
The yield on the 91-day Treasury bills increased to 28.61% at the end of August 2022.
For the 182-day and 364- day Treasury bills, yields as at the end of August were were 29.94% and 29.52% respectively.
Government, for the third quarter of 2022, is targeting a gross issuance of GHS 23 billion, of which about GHS 21.12billion will be to roll-over maturities.
The issuance will be made through debt instruments including the 91-day and 182-day bills, which will be issued weekly; the 364-day bill will be issued bi-weekly, also through the primary auction, with settlement being the transaction date plus one working day.
Within the Q3 2022, securities of 2-years up to 7-years are expected to be issued through the book-building method by the Bond Market Specialists (BMS); meanwhile, the Treasury may re-open the existing 5-year USD bond based on investors’ requests and prevailing market conditions.
Gov’t exceeds target in last week’s auction
Government, exceeded its target for last week’s T-bill auction with a target-coverage ratio of 1.03, raising GHS 1.776 billion.
The Treasury accepted all bids with a discount rate quote of 26.50% – 27.47% for the 91-day, 25.33% – 26.84% for the 182-day, and 22.50% – 23.20% for the 364-day.
The 91-day bill cleared at 29.05%, with the 182-day and 364-day bills settling at 30.23% and 30.02%.
T-bills sale begun the year with a yield of 12.52% for the 91-day bill and 13.19% for the 182-day.
Meanwhile, the government will this week raise GHS 1.682 billion across the 91-day to 182-day Treasury bills.
The funds will be used to refinance total maturities worth GHS 1.567 billion.
