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
Batswana need to do better to stop FMD

It is a clear signal that the government’s purse is empty and that our own behaviour has left veterinary officials fighting with one hand tied behind their backs. We have been here before. During COVID-19, many of us thought we knew better. We ignored simple rules, we carried on as if the danger was someone else’s problem, and the virus took lives and left our economy on its knees. We are still broke from that experience. Yet now, with FMD...

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