https://www.myjoyonline.com/government-faces-%c2%a22-83bn-5-year-bond-refinancing-with-26-foreign-holdings/-------https://www.myjoyonline.com/government-faces-%c2%a22-83bn-5-year-bond-refinancing-with-26-foreign-holdings/

The government is faced with refinancing a ¢2.83 billion 5-year bond, maturing on November 28, 2022 with 26% of foreign holdings.

With the unfavourable pricing conditions, analysts expect the government to present a rollover offer.

This is expected to increase the cost of the financial instrument.

Also, the government will seek to raise ¢2.17 billion to refinance the upcoming Treasury bills maturities of ¢1.72 billion.

Meanwhile, for the first time in six weeks, the government exceeded its auction target. It accepted all bids and raised GH¢1.66 billion in the process.

It also exceeded its refinancing obligation by 54%.

Analysts believe the excess uptake will provide some buffer to address future auction shortfalls.

Despite improved demand, yields went up by more than 35% The 91-day and 182- day tenors went for 35.20% and 35.99%.

Bond market activity picks up

Activity on the secondary bond market picked up last week as aggregate turnover rose by 8.07% week-on-week to ¢3.19 billion.

Though the front end of the yield curve saw more trading activity, yields increased by an average of 2% as selling interest dominated the market.

Analysts expect a topsy-turvy bond market this week as investors remain defensive with lingering uncertainty as the market awaits the Debt Sustainability Analysis report.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.