The government intends to secure GH¢6.353 billion through the issuance of Treasury bills today, Thursday, January 23, 2025, amid anticipations of a possible reduction in interest rates following several weeks of consistent increases.
This borrowing will be facilitated through the release of 91-day, 182-day, and 364-day bills aimed at refinancing GH¢5.60 billion in obligations that are maturing.
Currently, interest rates average approximately 29%, having risen since the beginning of the year, which indicates prevailing concerns within the money market.
Nevertheless, analysts predict that rates may stabilize during this auction, despite the government’s significant dependence on short-term instruments to fulfill its funding requirements.
In the previous week, the government experienced its third consecutive oversubscription in the money market, successfully raising GH¢8.84 billion against a target of GH¢6.35 billion and maturing bills totaling GH¢5.53 billion.
Although there were minor rejections of bids for the 91-day and 182-day instruments, yields for the 91-day, 182-day, and 364-day bills saw slight increases to 28.42% (+8 basis points), 28.96% (+1 basis point), and 30.29% (+11 basis points), respectively, on a week-on-week comparison.
The strong participation from investors highlights the attractiveness of high yields, even in light of expectations for a potential hold in monetary policy this week.
Analysts further attribute the robust demand to the Treasury’s urgent need to address upcoming maturities, which continues to influence market dynamics.
