Momentum on the money market continues to persist, with investors displaying heightened interest in T-bills.
This comes as the Government once again exceeded its Treasury bill target by GHS 1.9 billion and rejected 10.865 billion bids last week.
The latest auction results from the Bank of Ghana reveal that the Treasury accepted only GHS 9.83 billion, surpassing its GHS 7.73 billion target and covering GHS 7.24 billion in maturities
For the 91-day and 182-day T-Bills, bids amounted to GHS 7.38 billion and GHS 5 billion, with the Government accepting GHS 4.23 billion and GHS 1.43 billion, respectively. Bids for the 364-day bill reached GHS 8.11 billion, of which GHS 3.96 billion was accepted.
As investors continue to supply more funds in purchase of treasury bills and government demanding less of it, interest rates on the short-term instruments declined, with the 91-day, 182-day, and 364-day bills dropping to 24.48%, 25.89%, and 27.29% week-on-week, respectively.
Market analysts expect yields to decline further as the Treasury intensifies its efforts to cut borrowing costs amid an anticipated inflation slowdown and sustained strong demand.
They believe the strategic use of the Debt Service Recovery Cedi Account (Sinking Fund) to bolster buffers and manage debt could create room for longer-term issuances at competitive rates in the near future.
Looking ahead, the Government aims to raise an additional GHS 6.49 billion in debt on Friday, February 28, 2025.
