Economy
Government Borrowing Costs Fall Below 5% as T-Bill Demand Surges
BirrMetrics · 11 hours ago · Read the Full Story on BirrMetrics
AI SUMMARY
The Ethiopian government's short-term borrowing costs dropped below five percent as Treasury bill demand surged to more than three times the offered amount.
- The National Bank of Ethiopia published auction results showing short-term borrowing costs fell below five percent.
- The October 28, 2026 auction attracted 69.52 billion birr in bids against 22.55 billion birr offered.
- The government accepted the entire 22.55 billion birr offered, leaving 46.97 billion birr unaccepted.
- The weighted average annualised yield declined to 4.708 percent from 5.400 percent on October 14.
- The strongest demand relative to supply was for 91-day securities, which received 11.81 billion birr in bids against an offer of 2.56 billion birr.
- One-year Treasury bills attracted the largest volume of bids at 34.53 billion birr against 12.31 billion birr offered.
- Annualised weighted average yields ranged from 1.305 percent for 28-day securities to 6.016 percent for 364-day bills.
- Annual headline inflation stood at 14.6 percent in October 2026, remaining considerably above the 4.708 percent weighted average yield.
- In an August 7, 2024 auction, the NBE offered 24 billion birr, received 6.96 billion birr in bids, and recorded a weighted average yield of 9.183 percent.
- The National Bank of Ethiopia conducted the auction on behalf of the Ministry of Finance through the Central Securities Depository system.
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