Government Exceeds Treasury Bill Target by GHS 550 Million in Latest Auction- Ghana

The Government of Ghana has successfully exceeded its Treasury bill target by GHS 550 million, according to the latest auction results from the Bank of Ghana. The target was set at GHS 6.14 billion, but total bids amounted to GHS 7.26 billion, indicating strong investor demand. However, despite the oversubscription, the government opted to reject GHS 570.64 million in bids to manage its borrowing needs effectively.

The 91-day Treasury bill received GHS 5.32 billion in bids, with GHS 5.21 billion accepted. The 182-day bill attracted GHS 1.56 billion in bids, of which GHS 1.29 billion was accepted, while the 364-day bill saw GHS 381 million in bids, and GHS 192 million was accepted. The government’s rejection of certain bids highlights a selective approach to managing the national debt.

Interest rates for the Treasury bills remained stable across the yield curve, with rates ranging between 15% and 18%. The yield on the 91-day bill decreased slightly to 15.32% from 15.45%, while the 182-day bill dropped to 16.03% from 16.18%. The 364-day bill saw a decrease in yield to 18.37% from 18.62%, reflecting a consistent downward trend in borrowing costs.

Looking ahead, the Treasury plans to raise GHS 6.32 billion in the upcoming auction. The continued decline in interest rates signals the government’s ongoing efforts to reduce its borrowing costs and manage its fiscal challenges in a stable manner.

Source: Citi newsroom