adverts
Government Targets GH¢6.35 Billion in T-Bill Auction Amid Potential Rate Stabilisation
The government is set to borrow GH¢6.353 billion today, Thursday, January 23, 2025, through Treasury bills to refinance GH¢5.60 billion in maturing obligations.
The auction will feature 91-day, 182-day, and 364-day instruments, with market participants anticipating a potential pause in the upward trend of interest rates.
Currently, interest rates on T-bills hover around 29% and have been steadily increasing since the start of the year.
adverts
However, analysts expect this auction to signal a stabilisation in rates as the government continues to rely on short-term borrowing to address its funding needs.
Last week, the government raised GH¢8.84 billion, surpassing its target of GH¢6.35 billion, with maturing bills worth GH¢5.53 billion. This marked the third consecutive oversubscription, highlighting strong investor interest in T-bills.
Despite the oversubscription, yields rose marginally for the 91-day, 182-day, and 364-day bills to 28.42% (+8 bps), 28.96% (+1 bps), and 30.29% (+11 bps), respectively, on a week-on-week basis. Marginal rejections of bids for the 91-day and 182-day instruments were also recorded.
The strong demand for Treasury bills continues to be driven by elevated yields and the government’s pressing need to meet maturing obligations. Analysts note that market dynamics are heavily influenced by the Treasury’s funding requirements, even as investors weigh expectations of a potential hold in monetary policy.
As the government navigates its borrowing needs, today’s auction will provide further insights into interest rate movements and investor confidence in Ghana’s short-term debt instruments.
