T-Bills Archives - Page 6 of 6

22 Feb

T-Bills Auction: Government To Raise ¢2.89bn This Week

wontumionlineBusiness, News182-day, 364-day, 91-day, T-Bills

The government will raise ¢2.89 billion in Treasury bills this Friday February 24, 2022 to refinance T-bill maturities worth ¢2.65 billion. The bills will be issued across the 91-day, 182-day and 364-day tenors. Ahead of this, analysts expect investor demand to remain strong, leading to declining yields. Yields are expected to decline in the near term. This is primarily so because the Treasury market is the only source of borrowing for government. In the T-bill auction last week, the government mobilized ¢2.76 billion out of ¢3.11 billion as investor demand remains strong. The uptake exceeded the auction target of ¢1.71…

21 Feb

Bonds Constituted 76.4% Of Banks Investments In 2022

wontumionlineBusinessBoG, Bonds, Domestic Debt Exchange Programme, T-Bills

Securities or long-term debt instruments or bonds were the largest components of banks’ investment portfolios in 2022. This is despite the Domestic Debt Exchange Programme. According to the Bank of Ghana, its share increased to 76.4% in December 2022 from 75.3% in December 2021. The share of short-term bills or Treasury bills in total investments, however, declined to 23.3%, from 24.4% over the same comparative period. Also, the share of equity investments remained negligible at 0.3%. Banks investments contracted by 4.8% in 2022 Meanwhile, banks investments contracted by 4.8% to ¢79.2 billion in December 2022 from a growth of 29%…

07 Feb

T-Bills: Government To Raise ¢2.76bn This Week

wontumionlineBusiness182-day, 91-day, Domestic Debt Exchange Programme, T-Bills

The government will raise ¢2.76 billion on Friday, February 10, 2023, to refinance Treasury bill maturities worth ¢2.53 billion. This will be issued via the 91-day, 182-day and and 364-day bills. With such a large size on offer, the yields are expected to continue the upward trajectory, but marginally. Following the Domestic Debt Exchange Programme, which has triggered the suspension of the issuance of bonds, the short term securities market remain the only source of borrowing for the government. Consequently, investors have no option than to invest in the treasury market for gains. Last week, the government mobilised ¢1.95 billion…

19 Jan

It Will Be Suicidal To Touch T-bills Under Debt Exchange Programme – Ofori-Atta

wontumionlineBusinessGhana, Ken Ofori Atta, T-Bills

Finance Minister, Ken Ofori-Atta has assured that government will not touch Treasury Bills (T-bills) under the Domestic Debt Exchange Programme. According to him, it will be suicidal for government’s own finances and fundraising programmes in the future to touch T-bills as part of the programme. Mr. Ofori-Atta noted that government has conducted a Debt Sustainability Analysis which does not include T-bills. “We can’t afford to touch it. Let me assure you, Treasury bills will forever remain sacrosanct. Treasury bills are exempted completely. We have done the sustainability analysis. We are not including treasury bills. That is how government funds its…

16 Jan

Interest Rates Remain Unchanged As Government T-Bills Oversubscribed By 52%

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

Interest rates remained stable despite the government achieving more than 52% oversubscription of Treasury bills sale. According to the latest auction results, government obtained ¢1.72 billion from the short-term securities, but accepted ¢1.71 billion of the bids tendered. The target for the auction was ¢1.125 billion. 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. The yield on the 91-day and the 182-day T-bills dipped slightly though relatively same…

13 Jan

Government Bagged ¢10.84bn From T-bills In December 2022

wontumionlineBusiness, Newsdemand, Domestic Debt Exchange, T-Bills

The government accrued ¢10.84 billion out of total bids worth ¢12.03 billion in the money market during the month of December. This was due to the improved demand and tight pricing competition at the auctions. Also, the exemption of Treasury bills from the Domestic Debt Exchange spurred investor demand. Due to the improved demand and tight pricing competition at the auctions, the yields on the 91-day and 182-day tenors fell marginally, a situation which reduced the government cost of borrowing slightly within that period. Analysts expect T-bills demand to continue to be high, while the secondary market remains quiet as…

04 Jan

Government To Raise ¢1.49bn In T-bills This Week

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

Government is expected to raise ¢1.49 billion this week to refinance the upcoming Treasury bills maturities of ¢1.37 billion. This follows a narrow miss of its target last week. The government raised ¢1.81 billion last week against a target of ¢1.87 billion, about 96.81% of the auction target. The uptake, however, exceeded the refinancing obligation. The T-bill curve continued to flatten as the yield on the 182-day was 35.98%, while interest on the 364-day stood at 35.89%. The 91-day bill, however, cleared at 35.36%. Analysts expect T-bill yields to decline as an expected IMF support-programme in the first quarter of…

28 Dec

Debt Exchange: Financial Sector Will Collapse If Government Adds T-bills – Economist

wontumionlineBusinessDebt exchange, Financial Institutions, Financial Sector, Professor Godfred Bokpin, T-Bills

Economist and Professor of Finance at the University of Ghana Business School, Professor Godfred Bokpin is warning of the collapse of the financial sector if government includes Treasury bills in the debt exchange programme. He, however, does not expect the government to rope in Treasury bills into the debt exchange programme because that is its only source of borrowing. Speaking on the Joy FM Super Morning Show, Professor Bokpin expressed unhappiness about the inclusion of individual bondholders in the debt exchange programme, describing the move as a wholesale approach. “If you look at the financing landscape right now, that [T-bills]…

31 Oct

Interest Rates Hit 34%; Government T-bills Undersubscribed By 34%

wontumionlineBusinessBoG, imf, Interest rates, Investors, T-Bills

Interest rates on government securities shot up to 34% last Friday, October 28, 2022, but government failed to achieve its target in the latest Treasury bills auction. This may be due to investor concern about the probability of a debt restructuring by government before a programme can be secured from the International Monetary Fund (IMF). Despite the rising yield on the treasury market, investors are mindful of the current economic situation in the country. The IMF and the World Bank are yet to outdoor the nation’s debt situation, whether it is sustainable or not, but there are analyses that the…

27 Sep

Government To Face Difficult Refinancing Options In Repaying Maturing T-Bills – Report

wontumionlineBusinessDatabank Research, Refinancing, T-Bills, Weekly Fixed Income Update

The government may face complicated refinancing options in repaying Treasury bills that will mature on October 2022 According to the Weekly Fixed Income Update by Databank Research, a refinancing offer on October 3, 2022, may not get much traction due to the expected domestic debt restructuring. It, therefore, pointed out that the government will likely supplement any refinancing offer with the Bank of Ghana support to get more favourable refinancing options. “Last week, Fitch Ratings downgraded Ghana’s Issuer Default Rating from ‘CCC’ to ‘CC’. They cited possible debt restructuring, high debt service, and constrained financing as reasons for the recent…