The government may have to choose from a number of challenging refinancing options to pay for Treasury bills that will mature in October 2022.
A refinancing offer on October 3, 2022, may not get much traction due to the anticipated domestic debt restructuring, claims Databank Research’s Weekly Fixed Income Update.
Therefore, it made the point that the government will probably add the Bank of Ghana’s support to any refinancing plan in order to obtain more advantageous refinancing choices.
The government is anticipated to refinance total maturities of $786.6 million by offering $905 million over the 91-day to 182-day bills.
Treasury fell short of its goal for the first time in 15 weeks.
For the first time in 15 weeks, the Ghanaian Treasury fell short of its auction goal during last week’s (September 23, 2022) T-bill sale.
The low number of bids, which made up 89.59% of the auction objective in total, was largely to blame for the low uptake.
The current weighted average yields for T-bills are 30.18% for 91-day tenors, 31.34% for 182-day tenors, and 30.47% for 364-day tenors.
Investors should continue to be interested in upcoming maturities
Investor interest in short-term maturities in the secondary market will remain strong in the meantime on the bond market.
“We expect investors to focus on T-bills in the primary market. Investors may also be on the lookout for a bond offering to refinance the maturing paper on October 3, 22. We expect investors to maintain interest in near-term maturities in the secondary market”.
Content created and supplied by: Kritiq (via Opera
News )