After recording a shortfall in treasury bills target, the government will this week seek to raise ¢2.20 billion on the money market.

This will come across the 91-day, 182-day, and 364-day treasury bills.

The money to be raised will be used to cover upcoming maturities worth ¢2.09bn.

Analysts expect yields to continue the upward drift as the treasury seeks to replenish its buffers for upcoming obligations amidst the uptick in inflation.

Headline inflation quickened to 42.2% year-on-year in May 2023, partly due to an upturn in food inflation to 51.8%. However, non-food inflation eased to 34.6% on declines in the transport and housing and utilities division.

T-bills yields are expected to remain elevated as investors adjust yields expectations upwards due to an uptick in inflation.

Government fails to achieve T-bills target last week

Last week, the government’s T-bills auction failed to attract sufficient bids to match the government’s target for the week, while total uptake also lagged corresponding maturities.

According to the auction results, the T-bills sale fell short of the ¢3.79 billion ambitious target set by government. The auction of short-term securities went down by ¢771 million.

The government secured ¢3.018 billion from the short-term securities but accepted ¢3.015 billion. The 91-day bill as usual received a chunk of the bids from the investors, representing about 79% of the total T-bills. About ¢2.398 billion were tendered, but the government accepted ¢2.394 billion