The government is set to borrow GH¢8.26 billion through treasury bills today, March 14, 2025.
The funds will be raised via the issuance of 91-day, 182-day, and 364-day bills to refinance GH¢7.91 billion in maturing bills.
However, borrowing costs have been declining, with treasury bill yields dropping to nearly 16% last week.
Bids in the treasury market have also slowed as some institutional investors shift towards shorter-term instruments for higher returns. This trend is reflected in the Bank of Ghana’s 56-day bill, which surged 65.81% week-on-week to GH¢8.94 billion last week.
Analysts predict a near-term yield floor, as reduced participation could slow the downward trend in yields.
“We contend that despite a hawkish inflation rate, yields may continue to decline. Lingering ‘bid rejection phobia’ and rate uncertainty could delay stabilization, with the outlook hinging on the MPC’s upcoming MPR decision,” Databank Research noted.
Last week, treasury bill yields saw one of the sharpest declines, with investor bids dropping by 43.5% week-on-week to GH¢10.31 billion.
Total uptake stood at GH¢6.22 billion, surpassing the target of GH¢5.74 billion and maturing obligations of GH¢5.45 billion.
The 91-day bill yield declined to 17.71%, the 182-day bill fell to 18.97%, and the 364-day bill dropped to 19.98%, marking week-on-week declines of 307 basis points, 402 basis points, and 272 basis points, respectively.
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