The government will raise ¢1.42 billion to refinance Treasury bill maturities worth ¢1.31 billion across the 91-day and 182-day bills on Friday February 3, 2023.
This is coming after it successfully achieved 60% oversubscription of the sale of the treasury securities on Friday, January 27, 2023.
With the relatively small offer size, analysts and market watchers expect the government to meet its target.
The government made significant step last week on the Domestic Debt Exchange Programme (DDEP) after some key stakeholders agreed to some terms of the DDEP, including payment of a 5% coupon rate on the new bonds in 2023. The amended terms also included the removal of clauses in the exchange memorandum that empowers the government to vary the terms of exchange.
Analysts believe that the improved terms may garner more investor buy-in to the DDEP.
The government on Friday, January 27, 2023, raised ¢1.98 billion out of total bids of ¢2.05 billion.
The bids tendered resulted in an oversubscription of about 60%.
The 91-day and 364-day yields climbed to 35.71% and 35.81%, respectively, correcting the hump in the T-bill curve.