Demand for Treasury bills continued to gain traction as the government raked in ¢8.11 billion out of total bids of ¢8.20 billion in the month of September 2022.
Government thus exceeded its T-bill issuance target of ¢7.36 billion for the month with a target.
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) as yields continued their uptrend throughout September 2022.
Last week, the Treasury raised GH¢999.86 million in the T-bill auction, accepting all bids.
The uptake exceeded the auction target of ¢905.00 million by 10.48%.
The yields on T-bills continued their northward trek, with the 91-day bill clearing at 30.45% and the 182-day bill going for 31.57%.
The weighted average yield of the 364-day bill was however 31.55%.
This week, the Treasury is seeking to raise ¢1.176 billion across the 91-day to 182-day bills.
The expected amount raised will be used to refinance maturities worth G¢1.092 billion.
Trading activity on bond market shoots up to ¢3.32bn
On the bond market (secondary market), trading activity shot up to ¢3.32 billion (+128.5%), with sell-side activity dominating trades.
The yield curve widened by an average of 101 basis points as a result.
Most trades occurred at the front to the belly of the yield curve, with 2022-2025 maturities accounting for 48.6% of total face traded while 49.7% of trades occurred along the 2026-2029 maturities.
“In the primary market, we expect investors to maintain interest in T-bills for frequently re-pricing benefits, as we do not expect a bond offer this week. Investors in the secondary market are likely to focus on trading at the front to the belly of the yield curve”, Databank Research said.