https://www.myjoyonline.com/t-bills-auction-government-to-borrow-%c2%a21-34bn-this-week/-------https://www.myjoyonline.com/t-bills-auction-government-to-borrow-%c2%a21-34bn-this-week/

The government will borrow ¢1.34 billion on the Treasury market this Friday March 31, 2023.

This will be done through the issuance of the 91-day and 182-day Treasury bills.

However, the expected amount is far less than the ¢3.206 billion target last week

The uptake will be used to refinance maturing bills worth ¢1.28bn.

The Monetary Policy Committee of the Bank of Ghana increased the policy rate by 150 basis points to 29.50% to reinforce the pace of disinflation.

Additionally, the MPC reset domestic currency deposits' cash reserve ratio to 14.00%, from 12.00%.

Analysts believe investors will price the policy rate rise into their bids at the next T-bill auction, increasing the yields.

Last week, the government almost took up all the bids in its T-bill auction, raising ¢2.44bn.

Though the proceeds surpassed the refinancing obligation by 29.96%, it covered 76.15% of the auction target.

Yields on the 91-day and 182-day pushed up to 18.88% (+35 basis points) and 21.44% (17 basis points). However, the 364-day yield declined to 25.66%.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.


DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.