Government bags ¢8.11bn from T-Bills in September 2022

In September 2022, the government received 8.11 billion out of a total of 8.20 billion offers, indicating that demand for Treasury bills was still on the rise.

As a result, the government issued more T-bills than it had anticipated, exceeding its monthly target of 7.36 billion.

As rates continued to rise during September 2022, the 91-day, 182-day, and 364-day tenors cleared at 30.45% (+184 basis points), 31.57% (+163 basis points), and 31.55% (+202 basis points, respectively).

The Treasury accepted all offers last week and raised GH999.86 million in the T-bill auction.

The uptake was 10.48% more than the auction target of 905.00 million.

The 91-day bill cleared for 30.45% and the 182-day bill went for 31.57% as the yields on T-bills continued to move upward.

However, the 364-day bill’s weighted average yield was only 31.55%.

The Treasury is looking to raise $1.176 billion this week through notes with maturities ranging from 91 to 182 days.

The anticipated amount raised will be utilized to refinance G1.092 billion in maturities.

Bond market trading jumps to $3.32 billion.

Trading volume on the secondary bond market increased to 3.32 billion (+128.5%), with sell-side activity predominating trades.

As a result, the yield curve broadened by an average of 101 basis points.

The majority of trades took place along the yield curve’s front to belly, with the 2022–2025 maturities accounting for 48.6% of the total face traded and the 2026–2029 maturities accounting for 49.7% of trades.

Since we don’t anticipate a bond offer this week, we anticipate that investors will continue to be interested in T-bills for their benefits of rapid price changes. According to Databank Research, investors in the secondary market are likely to concentrate on trading at the front to the belly of the yield curve.

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