The government will borrow a whopping GH¢8.26 billion via treasury bills today, March 14, 2025.
The funds will be raised through the issuance of the 91-day, 182-day, and 364-day bills to cover GH¢7.91 billion in maturing bills.
However, the good news is that the cost of borrowing has been declining after yields plummeted to nearly 16% last week.
Bids have begun to dry up in the treasury market as some institutional investors shift to the very short end of the yield curve for higher returns. This reflects the Bank of Ghana’s 56-day bill surging 65.81% week-on-week to GH¢8.94bn last week.
It reinforces analysts’ expectations of a near-term yield floor, as reduced participation may slow yield compression.
“We contend that despite a hawkish inflation rate, yields may continue to decline. Lingering “bid rejection phobia” and rate uncertainty could delay stabilisation, with the outlook hinging on the MPC’s upcoming MPR decision”, Databank Research said.
Last week, treasury bill yields recorded one of the sharpest declines.
This trend was underscored by a significant dip in investor bids, down 43.5% week-on-week to GH¢10.31 billion.
Total uptakes stood at GH¢6.22 billion, exceeding both the target of GH¢5.74 billion and upcoming maturities of GH¢5.45 billion.
The 91-day went down to 17.71%, 182-day to18.97%, and 364-day to 19.98%, falling by 307 basis points, 402bps, and 272bps week-on-week, respectively.
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