On Friday, May 12, 2023, government will borrow $3.33 billion from the Treasury Market to partially refinance maturities totaling $2.31 billion.
The media understands that part of the ¢3.33 billion will be used to settle coupon payments of the pension bondholders.
The amount which will be the biggest so far this year will be issued via the 91-day, 182-day and 364-day Treasury bills.
Analysts perceive investors bidding higher yields on liquidity squeeze, as inflation data for April 2023 is expected to be release on May 10, 2023.
But the $750 million loans approved by the Parliament of Ghana last week may help slow down the rise in money market yields.
However, the cost of borrowing remains a concern to many analysts and market watchers.
The T-bill auction on Friday, May 5, 2023, was oversubscribed, as the treasury raised ¢2.57 billion, exceeding the gross target by 40.01%.
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 T-bills as ¢1.62 billion were tendered. All the bids were consequently accepted.
Also, almost all the ¢380.75 million of bids submitted for the 182-days T-bills were accepted.