Gov’t to raise GHS 3.1bn in upcoming T-Bill auction

In the upcoming T-bill auction scheduled for Friday, November 10, 2023, the government is gearing up for a substantial issuance of GH¢3.11 billion.

This represents a notable 44.3% week-on-week increment compared to the previous auction, signaling an increased financing requirement.

The primary objective of this issuance is to refinance existing T-bills with a total estimated maturity value of GH¢2.89 billion.

While refinancing obligations are common in the world of government debt management, the size of this upcoming issuance suggests a more pronounced impact on clearing yields at the auction.

The substantial increase in the issuance amount may necessitate the government to offer more attractive interest rates to entice investors and this could potentially lead to a notable uptick in clearing yields, which, in turn, can have implications for the broader financial market landscape.

The upcoming T-bill auction is a critical moment for investors and stakeholders in the financial market as it underscores the government’s debt management strategy and the challenges it faces in meeting its financial obligations.

Observers will be keenly watching the yield dynamics and investor sentiments which can provide valuable insights into the country’s economic and fiscal outlook.

Source:norvanreports