The government raised a total of ¢14.16 billion via Treasury bills in March 2023.

This is out of total bids of ¢16.70 billion as investor demand remained robust.

In a bid to reduce the debt burden, the yields dropped sharply, with the 91-day yield at 18.88% (-17.14% month-on-month).

Also, the 182-day and 364-day bills closed lower at 21.44% (-14.45% month-on-month) and 25.66% (8.80% month-on-month), respectively.

Analysts believe that investor interest will remain firm for upcoming issuances in April 2023 though some risks persist.

Additionally, yields are expected to rise due to the policy rate hike.

Government borrowed ¢70.95bn via T-bills in 2022

In 2022, the government raised a total of ¢70.95 billion in the money market auctions. This is out of total bids worth ¢72.83bn.

However, the amount government expect to raise in 2023 may exceed that of 2022. This is because the treasury market is presently the only source of borrowing for government.

Yields on the money market securities surged significantly in 2022 as investors priced the higher inflation into yields to improve real returns.

Consequently, the yield on the benchmark 91-day increased from 12.51% (December 2021) to settle at 35.36% (December 2022).