Mmegi

Yield demands climb at gov’t debt auctions

Tough task: The Finance Ministry needs to raise funding, while keeping government’s borrowing costs stable
Tough task: The Finance Ministry needs to raise funding, while keeping government’s borrowing costs stable

Government is facing upward pressure on its borrowing costs, as lenders at its monthly debt raising activities in the capital market demand increasingly higher returns, BusinessWeek trend analysis shows.

According to figures published by the Bank of Botswana (BoB), which is government’s agent in the capital market, the highest bid received for the various bonds offered in the monthly auctions has been ticking up over the months.

Whilst the central bank does not automatically accept the highest bid received and, in fact, nearly always rejects it, the rising rates indicate how the market is pricing government debt.

Editor's Comment
Botswana must not be a flag of convenience for rogues

‘A man’s country is not a certain area of land, of mountains, rivers, and woods, but it is a principle and patriotism is loyalty to that principle’.- George William CurtisAccording to the report carried in this publication, the fraudsters operating the so-called “dark fleet” have selected Botswana’s flag as their cover of choice. This is a direct assault on our country’s most valuable asset, the good name.For decades, Botswana has...

Have a Story? Send Us a tip
arrow up