Advertisement
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.

Advertisement
Editor's Comment
Celebrate responsibly, put safety first this holiday

“Safety first is safety always”– Charles M HayesAs most people begin travelling across the country to spend the President’s Holidays with family and friends, there is every reason to embrace the joy and togetherness that this period brings.While holiday periods bring joy, they are sadly often accompanied by a rise in road accidents, violent incidents and other avoidable tragedies. Too often, families that set out to celebrate together end...

Have a Story? Send Us a tip
arrow up