The government is faced with refinancing a ¢2.83 billion 5-year bond, maturing on November 28, 2022 with 26% of foreign holdings.
With the unfavourable pricing conditions, analysts expect the government to present a rollover offer.
This is expected to increase the cost of the financial instrument.
Also, the government will seek to raise ¢2.17 billion to refinance the upcoming Treasury bills maturities of ¢1.72 billion.
Meanwhile, for the first time in six weeks, the government exceeded its auction target. It accepted all bids and raised GH¢1.66 billion in the process.
It also exceeded its refinancing obligation by 54%.
Analysts believe the excess uptake will provide some buffer to address future auction shortfalls.
Despite improved demand, yields went up by more than 35% The 91-day and 182- day tenors went for 35.20% and 35.99%.
Bond market activity picks up
Activity on the secondary bond market picked up last week as aggregate turnover rose by 8.07% week-on-week to ¢3.19 billion.
Though the front end of the yield curve saw more trading activity, yields increased by an average of 2% as selling interest dominated the market.
Analysts expect a topsy-turvy bond market this week as investors remain defensive with lingering uncertainty as the market awaits the Debt Sustainability Analysis report.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.