Mmegi

Yields slide as gov’t hits P3.5bn target

Balancing gears: Finance Minister, Gaolathe, has a challenge of keeping the economy ticking, without overheating it by borrowing too heavily PIC: PHATSIMO KAPENG
Balancing gears: Finance Minister, Gaolathe, has a challenge of keeping the economy ticking, without overheating it by borrowing too heavily PIC: PHATSIMO KAPENG

Government’s cost of borrowing witnessed a rare decline at the most recent auction of bonds and Treasury Bills, with yields falling as the Bank of Botswana hit its target of P3.5 billion in debt for state coffers.

According to Kgori Capital trend analysis, yields generally fell across the two Treasury Bills and three bonds offered at the May 26 action. The government notes settled at yields as much as 105 basis points lower than the prior auction.

At the auction, only the 17-year bond saw yields increase by five basis points.

Editor's Comment
The Boko-led administration has to tread carefully

‘When you make peace withyourself, you make peace with the world’- Maha GhosanandaThis may come at a huge cost if not handled properly. What started off on Labour Day in Letlhakane this year, where Boko was in attendance when the militant lawyer-cum-trade unionist, Robert Rabasimane rebutted the President’s address in defence of the trade union has seemingly spiralled out of control. The issue is now creating a cat-and-mouse type of a...

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