T-bills: Government borrowed ¢16.34bn in December 2023

The government borrowed ¢16.34 billion via Treasury bills in December 2023, about 6.62% more than in November 2023.

This was to refinance matured bills worth ¢12.83 billion. The excess uptake was also used to cover other budgetary needs.

Investor demand for T-bills remained robust in December 2023, as the treasury received bids of ¢16.35 billion versus a combined target of ¢16.12 billion.

Yields saw mixed performance on a month-on-month basis, with the 91-day bill declining to 29.36%, while the 182-day advanced to 31.95%.

The 364-day yield also recorded a 74 basis points decline to 32.49%.

Analysts anticipate high auction uptakes in January 2023 to present upside pressures to T-bill yields, though continued disinflation may slow the rise.

If inflation continues to decline, yields will also come down.

The treasury received bids totalling ¢4.21 billion in the last auctioning for 2023 against an auction target of ¢4.08bn.

The government accepted all bids, with the uptake exceeding the week’s refinancing obligation by 65%.

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