yields Archives - Wontumi Online

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…

Government Borrowed ¢70.95Bn Via T-bills In 2022

wontumionlineBusinessMoney Market, T-Bills, yields

Government raised a total of ¢70.95 billion in the money market auctions for 2022. This is out of total bids worth ¢72.83bn. However, the amount government expect to raise in 2023 may exceed that of 2022. This is because the treasury market is presently the only source of borrowing for government. Yields on the money market securities surged significantly in 2022 as investors priced the higher inflation into yields to improve real returns. Consequently, the yield on the benchmark 91-day increased from 12.51% (December 2021) to settle at 35.36% (December 2022). The yields have since retreated as the 91-day Treasury…

Rising Inflation To Continue Posing Risk To Yields On T-bills – Report

wontumionlineBusinessBonds, Inflation, upside risk, yields

The rising inflation will continue to pose an upside risk to yields on Treasury bills and other short-term securities. According to a report by Databank Research, investors will continue demanding higher yields to compensate for the rising inflation. “Headline inflation came in at 37.20%, fueled by housing and utilities, household furnishings, and transport. We expect investors to continue demanding higher yields to compensate for the rising inflation”. Inflation has been surging and it’s uncertain whether the rate will fall anytime soon. Though interest rates have been rising, investors are not so much enthused about the yields because it is far…