Government plans to borrow GH¢5.74 billion in its next treasury bill auction on March 7, 2025.
Interest rates on treasury bills have declined to 20.7% in the government’s recent auction on February 28, 2025.
Demand for short-term instruments has surged in recent weeks, with the government consistently recording over 100% subscription rates.
In this week’s auction, the government secured an oversubscription of 181%, receiving bids worth GH¢18.25 billion but accepting GH¢7.42 billion. A total of GH¢10.83 billion in bids was rejected.
The auction results released by the Bank of Ghana showed that the 91-day and 364-day treasury bills attracted the most interest.
However, the 364-day bill received bids worth GH¢8.72 billion, but only GH¢2.02 billion was accepted.
The 91-day bill received bids totaling GH¢6.21 billion, of which GH¢2.38 billion was accepted.
Additionally, the 182-day bill saw tenders amounting to GH¢3.32 billion, with GH¢3.02 billion accepted.
Meanwhile, interest rates have continued to decline over the past few weeks:
• The 91-day bill now stands at 20.79%, down from 24.47% last week.
• The 182-day bill has fallen to 22.98%, compared to 25.38%.
• The 364-day bill declined from 27.29% to 22.69%.
The recent surge in demand for short-term instruments signals strong investor confidence. The government’s decision to reject excess bids suggests either a cautious borrowing approach or an effort to avoid high interest rates.
Treasury bills remain its primary source of borrowing as it seeks to regain access to the international capital market.
SSD/MA
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Meanwhile, the government plans to borrow GH¢5.74 billion in its next auction
