T-Bills Archives - Page 4 of 6

09 May

We Must Have Empathy; Seek Funding From T-bills Market To Settle Pensioner Bondholders – US Based Associate Professor

wontumionlineBusinessPensioner Bondholders, Professor Williams Peprah, T-Bills

Associate Professor of Finance at Andrews University in the USA, Professor Williams Peprah, has urged the government to seek funding from the Treasury market to settle matured investments – coupons and principal of the Pensioner Bondholders, saying, the calls for their investments to be settled must be treated with urgency because of their age. He, however, suggests that, if settling both the coupon and principal investments will be a challenge, then the government should focus on paying solely the coupons in the interim. “The suggestion by the pensioners is valid. Government can decide to swap some of these coupons and…

08 May

T-bills Auction: Government Exceeds Target By 40%; Borrowing Costs Surge

wontumionlineBusiness182-day, 364-day, 91-day, Interest rates, T-Bills

Government borrowing on the money market continued to shoot up significantly, as it accepted 99.9% of the bids tendered by the investors for the just-ended Treasury bills auction. The sale of the short-term securities was also oversubscribed by about 40% of the targeted amount of ¢1.834 billion, but once again the cost of borrowing has become a concern to many analysts and market watchers. According to the auction by the Bank of Ghana, the government accepted a significant ¢2.56 billion from the bids submitted by the investors, largely the banks. Yet again, majority of the bids came from the 91-day…

05 May

T-bills auction: Government To Borrow ¢1.83Bn On May 5

wontumionlineBusiness182-day, 364-day, 91-day, T-Bills

The government will borrow ¢1.83 billion today May 5, 2023, on the treasury market. The amount will be raised via the issuance of 91-day, 182-day and 364-day Treasury bills. This will be used to refinance upcoming maturities estimated at ¢1.75 billion. In this regard, ¢800 million fresh funds will be added to the new issuance. Analysts perceive yields could remain slightly elevated on tight liquidity conditions, until inflation data is released next week. The government bagged ¢2.06 billion from the sale of the short-term securities, about 30.4% oversubscription over the targeted amount of ¢1.585 billion Majority of the bids came…

05 May

Investor Demand For T-Bills Exceeds Target By GH¢12.39 Billion

wontumionlineBusinessT-Bills

Investors’ demand for short-term papers in the primary market continues to exceed targets, recording an oversubscription of GH¢12.39billion on the back of limited investment options and attractive yields on the Treasury bills. Bills tendered by investors totalled GH¢47.3billion, approximately an average of 33 percent higher than the target of GH¢34.91billion – leading to the rejection of marginal bids and sale of GH¢44.19billion across the 91-day, 182-day and 364-day tenors. The continuous excess uptake is expected to help the Treasury build buffers, with about GH¢30.55billion being used to refinance matured debt during the period – indicating a maturity cover of 1.55x.…

17 Apr

T-bill Auction: Interest Rates Shoot Up Again; Government Secures ¢1.79Bn

wontumionlineBusiness182-day, 364-day, 91-day, T-Bills

Interest rates shot up marginally again for the third week running, as the market corrects itself to reflect the prevailing economic condition. According to the auction results, the yield on the 91-day and 182-day T-bills inched up slightly. Whilst the 91-day T-bill went up by 0.05% to 19.79%, that of the 182-day bill increased to 22.47%, from 22.24% the previous week. But the one-year (364-day) bill went down by 0.05% to 26.90%. Government is hoping to reduce its interest costs substantially this year and the next couple of years, and therefore the high interest rate is a concern. Meanwhile, the…

10 Apr

T-bills Auction: Interest Rates Rise Again; Government Records 6% Oversubscription Of Auction

wontumionlineBusiness182-day, 364-day, 91-day, T-Bills

Interest rates rose marginally again as government recorded a slight oversubscription of its Treasury bills sale. According to the latest auction by the Bank of Ghana, the rising rates is in tandem with the recent policy rate increase by the Central Bank. The auction results showed that the yield on the 91-day T-bill went up by 0.31% to 19.69%, whilst that of the 182-day T bill increased to 22.24%, from 21.85% the previous week. The rate on the 364-day T-bill also surged to 26.95%. Some analysts have described the recent increase in the interest rates on the treasury market as…

04 Apr

T-Bills auction: Government To Borrow ¢1.77Bn This Week

wontumionlineBusiness182-day, 364-day, 91-day, T-Bills

The government will borrow ¢1.77 billion from Treasury bills this Thursday, April 6, 2023. This will be done via the issuance of the 91-day, 182-day and 364-day T-bills. The proceeds is expected to be used to refinance maturing bills worth ¢1.68 billion. Demand for the short term securities rebounded again, following improved investor sentiments about the economy. Last week, the government accepted ¢1.60 billion out of total bids tendered worth ¢1.62 billion. The uptake exceeded the auction target as demand picked up. Interest rates however rose marginally as the government secured more than 21.43% from the Treasury bills sale. The…

04 Apr

Government Borrowed ¢14.16Bn Via T-bills In March 2023

wontumionlineBusiness182-day, 364-day, 91-day, T-Bills, yields

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…

03 Apr

Government Gets GH¢1.6 Billion From T-Bills, Interest Rates Increase Slightly

wontumionlineBusinessInterest rates, T-Bills

The sale of treasury bills saw an oversubscription of about GH¢300 million from an auction held on March 31, 2023. The government secured GH¢1.59 billion from the auction after it set a target of GH¢1.34 billion. Last week, the government saw an under-subscription of about GH¢764 million after it set the target at about GH¢3.21 billion. Meanwhile, interest rates have increased slightly from an average of 18.87 percent to 19. 38%. According to the auction results from the Central Bank, the government secured GH¢1.24 billion from the 91-day bill and GH¢355.13 million from the 182-day bill. Interest rates however increased…

27 Mar

T-Bills Undersubscribed For First Time This Year, Government Gets GH¢2.44 Billion

wontumionlineBusinessT-Bills

Government secured GH¢2.44 billion from the sale of treasury bills in its latest auction held on March 24, 2023. The auction saw an under subscription of GH¢764.6 million. This will be the first time this year that treasury bills have been undersubscribed. The government set the target at GH¢3.21 to finance the payment of maturities for the first quarter. Meanwhile, the rates have remained quite stable in the past two weeks after dropping to an average of between 18.87% to 25.66%. According to the auction results from the Central Bank, the government secured GH¢1.41 billion from the 91-day bill, GH¢553.42…