T-bills auction: Government to raise ¢2.78bn this week
The government will raise ¢2.78 billion via Treasury bills this week on the Treasury market.
This is coming after weeks of oversubscription of Treasury bills at reduced prices.
The funds will be raised via the 91-day and 182-day bills.
The proceeds are expected to be used to refinance maturing principal amounts worth ¢2.64 billion.
Analysts believe investor demand will remain strong and sustain the yield decline.
The Ministry of Finance has assured that bondholders whose coupon and principal payments matured on February 6, 2023, and February 13, 2023 will receive their funds within the next 48 hours.
The analysts believe the ample market liquidity and the declining yield environment will be positive for all potential issuers.
In last week’s T-bill auction, the government raked in about ¢4.20 billion from the sale of T-bills, about 74% oversubscription of the targeted amount of ¢2.417 billion. It however accepted ¢3.31 billion of the total bids.
Investor demand remained robust and sustained decline in the money market yields due to improved liquidity levels.