Bank of Botswana aims to raise P3.1 billion in upcoming Treasury Bill and bond auction

This includes P2.5 billion from three- and six-month Treasury Bills and P600 million from three long-term bonds. The central bank has historically used shorter-term Treasury Bills to refinance existing debt and longer bonds for new government funding. Recent auctions have seen the Bank of Botswana meet its debt targets and observe a decrease in yields, leading to lower borrowing costs for the government.

This positive trend coincides with signs of stabilization in the budget and the broader economy, as indicated by fiscal authorities. The Finance ministry is expected to release its midterm budget review in October, which will update the projected deficit and refine growth figures. Improved diamond sales and a P7 billion dividend from the central bank to the government have contributed to market liquidity, further easing government borrowing costs.