Government will borrow ¢2.42 billion in Treasury bills to refinance the upcoming maturities of ¢2.22 billion in this week's T-bill auction.

That's according to its issuance calendar for the first quarter of this year.

The securities that the government will be selling are the 91-day T-bill, the 182-day T-bill and the 364-day T-bill.

This is coming after the government obtained ¢1.72 billion from the short-term securities, from a target of ¢1.125 billion last week.

The amount achieved exceeded the auction target by 52.30%, surpassing the refinancing obligation.

Due to competitive pricing of bids and robust investor demand, yields on the 91-day and 182-day tenors retreated to 35.46% (-20 basis points) and 35.83% (-11 basis points). The 364-day yield, however, recorded an uptick to 35.92% (+2 basis points).

More than 85% of the bids tendered were from the 91-day T-bills as demand surged. Government accepted all the bids of about ¢1.47 billion.

Again, the government accepted all the bids of ¢198.49 million tendered by the investors, largely banks.

Analysts expect T-bill yields to decline as an expected International Monetary Fund support-programme in the first quarter of 2023 coupled with a stable outlook of the cedi may limit currency pass-through to inflation.

However, it will depend on a successful Domestic Debt Exchange programme.