Tax budget: The government will borrow ¢2.73 billion this week
After missing its target of 3.33 trillion yen, the government is expected to borrow 2.73 trillion yen from the Treasury market this week.
This will be used to renewmaturities in the future amounting to ¢2.60 billion. Thegovernment is expected to raise money by issuing 91, 182 and 364 day bills.
The government has recently borrowed high amounts of money from the financial markets due to lack of access to other funds. Because of its debt default, it cannot access international capital markets orother financing.
However, researchers expect low prices and the expected funds from the International Monetary Fund (IMF) to reducethe rise in the money market in the short term. Many market observers also expect that theapproval of the board's announcement will have a positive effect on the sentiment of investors and will be a good support for the stability of the cedi.
In addition, access to funds should support budget implementation and reduce dependence on short-term financing, leading to thecompression of medium-term financial market returns. The government lost 15.9% of its debt
Last week, the government missed its Treasury fundingtarget by about 15.9%, after the¢3.33 billion target for the auction.
According to the market results, the subscription covered only 83.45% of the business target, but exceeded the compensation function by 20.62%. Despite prices declining for four consecutive months, the 91-day yield and 182-day yield rose 17 basis points and 13 basis points, respectively, to 20.43% and 22.96%.
In addition, access to funds should support budget implementation and reduce dependence on short-term financing, leading to thecompression of medium-term financial market returns. The government lost 15.9% of its debt
Last week, the government missed its Treasury fundingtarget by about 15.9%, after the¢3.33 billion target for the auction. According to the market results, the subscription covered only 83.45% of the business target, but exceeded the compensation function by 20.62%. Despite prices declining for four consecutive months, the 91-day yield and 182-day yield rose 17 basis points and 13 basis points, respectively, to 20.43% and 22.96%.
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