The government plans to borrow GH¢6.353 billion through Treasury bills on Friday January 24, 2025, amidst expectations of a potential downward adjustment in interest rates after weeks of steady increases.
The borrowing will be achieved through the issuance of 91-day, 182-day, and 364-day bills to refinance GH¢5.60 billion in maturing obligations.
Interest rates, which currently average around 29%, have risen since the start of the year, signalling concerns in the money market.
However, analysts anticipate rate stabilisation in this auction despite the government’s strong reliance on short-term instruments to address its funding needs.
Last week, the government recorded its third consecutive oversubscription in the money market, raising GH¢8.84 billion against a target of GH¢6.35 billion and maturing bills worth GH¢5.53 billion.
While marginal rejections of bids were noted for the 91-day and 182-day instruments, yields for the 91-day, 182-day, and 364-day bills edged slightly higher to 28.42% (+8 basis points), 28.96% (+1 bps), and 30.29% (+11 bps), respectively, on a week-on-week basis.
The robust investor participation reflects the appeal of elevated yields, despite expectations of a potential hold in monetary policy this week.
Analysts also attribute the strong demand to the Treasury’s pressing need to meet upcoming maturities, which continues to shape market dynamics.
