The government accrued ¢10.84 billion out of total bids worth ¢12.03 billion in the money market during the month of December.
This was due to the improved demand and tight pricing competition at the auctions. Also, the exemption of Treasury bills from the Domestic Debt Exchange spurred investor demand.
Due to the improved demand and tight pricing competition at the auctions, the yields on the 91-day and 182-day tenors fell marginally, a situation which reduced the government cost of borrowing slightly within that period.
Analysts expect T-bills demand to continue to be high, while the secondary market remains quiet as investors seek clarity and decide on participating in the Domestic Debt Exchange programme.
The government extended the deadline for participating in the Domestic Debt Exchange to January 16, 2023.
The government also agreed to pay a cash tender fee of 2% on the total principal of bonds maturing in 2023 and honour all unpaid and accrued interest until the programme is successful.
The amended terms in the Domestic Debt Exchange included individual investors as eligible participants and a minimum investor participation target of 80% of the total outstanding principal.
