T-bills auction: Government to borrow GH¢6.49bn; interest rates to plummet further

The government will borrow GH¢6.49 billion on the treasury market today February 28, 2025.

This will be done through the issuance of the 91 day, 182-day, and 364-day bills to retire GH¢6.12 billion in maturing bills.

Demand is expected to remain high as investors repose confidence in the Ghanaian economy.

Meanwhile, yields are expected to go down again for the fourth consecutive time this year.

This is because the Treasury would intensify its efforts to cut borrowing costs amid an anticipated inflation slowdown and sustained strong demand.

They believe the strategic use of the Debt Service Recovery Cedi Account (Sinking Fund) to bolster buffers and manage debt could create room for longer-term issuances at competitive rates in the near future. This strategy should alleviate concentration in the money market and support a more sustainable yield curve.

Last week, investors piled into treasury bills as improved liquidity from coupon payments on restructured bonds drove total bids up 15.8% week-on-week to GH¢20.49 billion.

However, the government accepted only 9.83 billion, covering a GH¢7.73 billion target and GH¢7.24 billion maturities.

Yields plunged across tenors, with the 91-day, 182-day, and 364-day bills falling to 24.48% (-239 basis points), 25.89% (-242bps), and 27.29% (-177bps) week-on-week respectively, as investors lowered rates to align with the Treasury’s pricing stance.

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