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Govt raises P200m more in debt

In the market: Through its monthly auctions of treasury bills and bonds, the Bank of Botswana not only raises funding for government but also helps deepen the financial sector. In addition, its auctions help set the benchmark yield for other issuers of debt in the market PIC: MORERI SEJAKGOMO
In the market: Through its monthly auctions of treasury bills and bonds, the Bank of Botswana not only raises funding for government but also helps deepen the financial sector. In addition, its auctions help set the benchmark yield for other issuers of debt in the market PIC: MORERI SEJAKGOMO

Government raised just P200 million of the P1 billion it was hoping to secure at a recent auction of bonds and treasury bills, as the central bank resisted the market’s push for higher yields.

The BoB, as government’s banker, conducts monthly auctions of treasury bills as well as bonds to primary dealers who are exclusively banks. At the auctions, the dealers compete to lend to the government by offering the yields they are seeking, with the BoB deciding the 'stop-out' yield or the level of interest it is willing to pay the dealers on particular securities on offer.

The Bank of Botswana (BoB) floated two treasury bills with maturities of three and six months, receiving bids of P1.05 billion on December 30.

Editor's Comment
Human rights are sacred

It highlights the need to protect rights such as access to clean water, education, healthcare and freedom of expression.President Duma Boko, rightly honours past interventions from securing a dignified burial for Gaoberekwe Pitseng in the CKGR to promoting linguistic inclusion. Yet, they also expose a critical truth, that a nation cannot sustainably protect its people through ad hoc acts of compassion alone.It is time for both government and the...

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