The Government of Ghana raised or borrowed ¢7.148 billion via the sale of Treasury bills in August 2022, about 39.70% more than its target.
It was hoping to borrow ¢5.117 billion to largely refinance maturing debts.
However, the rising interest rates deepen investor interest in then short-term securities.
The yield on the 91-day Treasury bills increased to 28.61% at the end of August 2022 (+227 basis points).
The clearing rates for 182-day and 364- day maturities were however 29.94% (+188 basis points) and 29.52% (+167bps) respectively.
Meanwhile, the government will this week raise ¢1.682 billion across the 91-day to 182-day Treasury bills.
The funds will be used to refinance total maturities worth ¢1.567 billion.
Due to increased sovereign risk, investors reduced their exposure to Government of Ghana bonds, increasing demand for T-bills.
Treasury exceeded target marginally last week
The Treasury exceeded its target for last week’s T-bill auction with a target-coverage ratio of 1.03, raising ¢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% (+43bps), with the 182-day and 364-day bills settling at 30.23% (+29bps) and 30.02% (+49bps).
T-bills sale begun the year with a yield of 12.52% for the 91-day bill and 13.19% for the 182-day.
Government was expected to borrow ¢4.59 billion as fresh funds in the second quarter of this year to finance part of its budget.
This was higher than the ¢3.78 billion borrowed in the first three months of 2022.
Chunk of the monies were expected to have come from the 91-day and 182-day Treasury bills.
- I have been battling prostate cancer for a year – KSM
- I’ve been given over ¢100k ‘haircut’ on my investment – Franklin Cudjoe
- Appointment Committee recommends approval of 2 out of 4 Justices nominated to the Supreme Court
- We will no longer be paying ¢0.50 and ¢1 as road toll next year – Roads Minister
- Waterstone Realty Ltd sues government for $4.7m over National Cathedral project
- Sacked against medical advice, workplace abuse and stigma – An HIV ambassador’s story
- 81 aspirants vie for 14 national executive positions in NDC
- Ghana in talks with Dubai oil refiner to barter gold for fuel
- Phones in the right hand, books in the left – WASSCE vs mobile phones
- George Addo Jnr: Otto Addo leaves behind a Black Stars squad pregnant with titles
- Nigerian star D’banj arrested for youth fund fraud
- Trades Minister celebrates Free Zones Authority, calls for export driven industrialisation
- WhatsApp is adding official support for Meta’s Bitmoji-style avatars
- Iran carries out first execution over anti-government protests
- Today’s front pages: Thursday, December 8, 2022
- GRA boss heaps praises on ICUMS’ E-auction module
- Afriyie-Ankrah’s former students support campaign with billboards
- World Cup 2022: Fifa ‘deeply saddened’ after reported migrant worker death
- Sterling asks FA to look at him returning to Qatar for quarter-final
- GSIA rejects Debt Exchange Programme
- Debt exchange: Our money shouldn’t be touched – UTAG tells government
- Government establishes ¢15bn Ghana Financial Stability Fund
- Putin: Nuclear risk is rising, but we are not mad
- Marketing Officer granted bail for stealing from Duraplast Company
- Government has not shown any seriousness in handling economic crisis – Franklin Cudjoe