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.
Latest Stories
-
The love I’ve received is breathtaking – Kuami Eugene shares health update
3 mins -
Government targets $100m private capital to complete Saglemi Housing Project
20 mins -
Anti-LGBTQI+ Bill will bring economic disaster to Ghana if signed into law – Prof. Diamond
32 mins -
Akufo-Addo, Bagbin impasse over Anti- LGBTQI+ Bill could harm economy – Franklin Cudjoe
36 mins -
Adamus accused of defying court-directed Interim Management Committee
51 mins -
NPP running mate saga: Frontrunners will be disappointed – John Boadu
1 hour -
Calls for ECG-PURC truce intensify as ‘dumsor’ worsens
1 hour -
Unstable exchange rate affects claims payment – Ghana Insurers Association
1 hour -
Bank of Africa Ghana donates to Chief Imam, hosts Moroccan community to mark Ramadan activities
2 hours -
We’re winning 2024 polls hands down – PNC declares
2 hours -
Zen Petroleum opens 50th fuel retail station
2 hours -
Dumsor contributed to NPP’s 2016 victory – Prof Agyeman-Duah
2 hours -
Police link prominent SA businessman to rapper AKA’s murder
2 hours -
Richard Sky’s case must also be thrown out – Sam George
2 hours -
John Kumah’s one-week observance comes off today
2 hours