The government will borrow GH¢5.55 billion on the treasury market tomorrow 23rd May, 2025.
This will be done via the issuance of 91-day, 182-day, and 364-day bills.
The funds will be used to settle maturing bills worth GH¢5.35 billion.
Demand for the short-term instruments has declined in recent times with the government missing its target for the third consecutive week.
Last week, investors submitted GH¢5.35 billion in bids, but the Treasury took only GH¢2.76 billion, a sharp pullback from the previous week’s full acceptance.
The auction fell short of the GH¢6.68 billion target and GH¢6.44 billion in upcoming maturities.
Yields on the 91, 182, and 364-day bills dipped week-on-week.
“We believe the Treasury’s selective acceptance reflects a deliberate effort to contain upward yield pressure despite tightening liquidity, as institutional demand shifts towards the Bank of Ghana’s 56-day bill, which raised GH¢10.9 billion last week. The segment-specific yield curve inversion between the 56- and 364-day bills is likely to persist, as we expect the MPC to maintain the MPR [Monetary Policy Rate] at 28% in its upcoming decision, adopting a wait-and-see approach amid the slight uptick in April’s month-on-month inflation”, Databank Research said.
In the near term, analysts anticipate modest auction uptake alongside continued yield compression.
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