The rising inflation will continue to pose an upside risk to yields on Treasury bills and other short-term securities.
According to a report by Databank Research, investors will continue demanding higher yields to compensate for the rising inflation.
“Headline inflation came in at 37.20%, fueled by housing and utilities, household furnishings, and transport. We expect investors to continue demanding higher yields to compensate for the rising inflation”.
Inflation has been surging and it’s uncertain whether the rate will fall anytime soon. Though interest rates have been rising, investors are not so much enthused about the yields because it is far lower than the current rate of inflation.
However, the report said investors will maintain their interest in T bills for re-pricing benefits while focusing on the near to medium-term maturities in the secondary market.
Last week, the government failed to meet the auction target of Treasury bills.
But this week the government is seeking to raise 1.44 billion from the 91-day to 182-day bills to refinance the upcoming T-bill maturities of 1.44 billion.
Market turnover stood at ¢3.25bn, up 31.98% last week
Last week, trading activity on the secondary market increased to ¢3.25 billion (+31.98% w/w).
The 2022-2025 maturities saw 33.2% of trades last week, while the 2026-2029 maturities accounted for 58.8% of the turnover.
Strong selling pressures persisted as the yield curve widened by an average of 100 basis points. Yields continue to climb as the market remains net offered.
Latest Stories
-
Bahamas World Relays: Ghana paired with world and Olympic champions in Heat 1
60 mins -
Bahamas 2024 Relays: Star-studded cast ready to put on pre-Paris show
2 hours -
Bahamas Relays preview: clash of global title-winning teams in men’s 4x100m
2 hours -
Arsenal keeper Raya wins Premier League Golden Glove
2 hours -
Iñaki Williams scores twice in Athletic Bilbao’s win over Getafe
2 hours -
Argument with Salah ‘completely resolved’ – Klopp
2 hours -
Reus to leave Dortmund at the end of the season
3 hours -
Uefa confirms 26-man squads for Euro 2024
3 hours -
Teacher Unions press home demands for the new allowances
3 hours -
Media’s failure to hold government accountable for ‘galamsey’ alarming – Mahama
3 hours -
Keta Presbytery urges Akufo-Addo to assent to anti-LGBTQ+ Bill
3 hours -
Ghanaian midfielder Lawrence Ofori nets maiden goal of the season with stunner against Vizela
3 hours -
Community fearful after off-duty policemen shot dead at East Trasacco
3 hours -
Dext Technology partners KNUST to train basic school teachers on STEM
4 hours -
My efforts led to remarkable transformation in Appiatse – Lands Minister
4 hours