T-Bills

T-bills: Government Secures GH¢3.34Bn As Interest Rates Tumble
08 Jul

T-bills: Government Secures GH¢3.34Bn As Interest Rates Tumble

Wontumi1Business
Momentum in the treasury market persists, with investors showing mild interest in t-bills during the latest money market auction. Investors submitted bids totalling GH¢3.34 billion, surpassing the GH¢3.24 billion target, according to auction results released by the Bank of Ghana According to figures from the Bank of Ghana, a chunk of the bids came in from the 91-day bill. Investors tendered GH¢2.51 billion for the 3-month financial instrument, with the government accepting all. The government also received and accepted total bids worth GH¢651.11 million from investors for the 182–day bill. For the 364-day bill, the government accepted all the bids…
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Treasury Bill Auction Yields GH¢4.83Bn Amid Falling Interest Rates
11 Mar

Treasury Bill Auction Yields GH¢4.83Bn Amid Falling Interest Rates

Wontumi1Business
In an unprecedented streak, interest rates in the Treasury Bill auctions have plunged for ten consecutive weeks, showcasing an unyielding demand for treasury bills despite looming upside risks. As anticipated by market analysts, interest rates nosedived, aligning with the downward trajectory of inflation. According to Joy Business, the 91-day bill's yield saw a substantial decline of 25 basis points, settling at 26.74%. Similarly, the 182-day bill experienced a drop to 29.24% from the previous week's 29.49%. The 364-day bill also followed suit, dipping by 16 basis points to 29.84%. Simultaneously, the government found itself flooded with bids, accepting a staggering…
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T-bills Auction: Interest Rates Fall For 9th Consecutive Week To 26.9%; Government Records 19% Oversubscription
04 Mar

T-bills Auction: Interest Rates Fall For 9th Consecutive Week To 26.9%; Government Records 19% Oversubscription

Wontumi1Business
Interest rates fell for the 9th consecutive week running in line with analysts’ forecasts. According to the auction results by the Bank of Ghana, the 91-day T-bill eased by 83 basis to 26.99%. Similarly, the 182-day bill also went down to 29.49% from the previous 29.74%. Again, the 364-day bill declined by 29 basis points to 30.0%. Based on the happenings since the beginning of the year, the rates are expected to go down further this week. Meanwhile, the government recorded about 19.9% percent oversubscription of the treasury bills auction, as demand for the short-term instruments remained high. The total bids…
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T-bills Auction: Interest Rates Fall For 8th Week Running; Government Raises GH¢6.26Bn
26 Feb

T-bills Auction: Interest Rates Fall For 8th Week Running; Government Raises GH¢6.26Bn

Wontumi1Business
Interest rates eased for the 8th week running on the treasury market but marginally. Indeed, the yields on the treasury bills continued to ease in line with most analysts’ forecasts. According to the auction results by the Bank of Ghana, the rate on the 91-day bill went down by 70 basis points to 27.82%. That of the 182-day bill however remained unchanged at 29.74%. The 364-day bill dropped to 30.29% from the previous 30.89%. Meanwhile, the government recorded 11.20% oversubscription over the ambitious target of GH¢6.26 billion It accepted all the bids submitted worth GH¢6.97 billion. About GH¢3.41 billion, representing 48.94%…
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Government To Borrow GH¢180Bn Via T-bills In 2024
09 Feb

Government To Borrow GH¢180Bn Via T-bills In 2024

Wontumi1Business
The government would borrow about GH¢180 billion via treasury bills in 2024. This will be 21% more than GH¢149.92 billion raised in 2023. The estimated maturities are GH¢150 billion, a growth of 28.0% over that of last year. The government is also expected to raise more than 50.0% of the GH¢61.9 billion budget deficit through treasury bills. Indeed, treasury bills are set to remain the dominant driver of activity on the Ghana Fixed Income Market. “We believe domestic investors could remain skewed towards shorter-dated Government of Ghana securities to manage risk exposure, blurring the hope for any bond issuance”, Databank…
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07 Feb

Government Borrowed GH¢22.06Bn Via T-Bills In January 2024

Wontumi1Business
The government of Ghana borrowed GH¢22.06 billion via treasury bills in January 2024. This is about 35.80% more than the targeted amount of GH¢15.13 billion. The majority of the bids came from the 91-day T-bill. Analysts expect the uptake trend to continue in February 2024 as the treasury heads for an estimated cash coupon payment of about GH¢4.3bn on the new bonds. However, yields are expected to decline as the market aligns with the disinflation trend combined with the 100 basis points cut in the monetary policy rate during the January 2024 Monetary Policy Committee decision. Last week, investors oversubscribed…
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T-bills Auction: Interest Rates Down For 3rd Consecutive Week; Achieves 72% Oversubscription
22 Jan

T-bills Auction: Interest Rates Down For 3rd Consecutive Week; Achieves 72% Oversubscription

Wontumi1Business
Interest rates took a nose dive for the 3rd consecutive week-running in 2024, the day the International Monetary Fund approved the first review of Ghana’s programme. According to auction results by the Bank of Ghana, demand for treasury bills continued to surge. This is because investor confidence is soaring following the expected release of the $600 million bailout package to Ghana this week by the IMF. The auction results revealed that the yield on the 91-day T-bill went down by 15 basis points to 28.88%. That of the 182-day bill also fell to 31.39% from the previous 31.51%. The rate on…
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Government To Borrow GH¢12.7bn Via T-Bills In January 2024
09 Jan

Government To Borrow GH¢12.7bn Via T-Bills In January 2024

Wontumi1Business
The government is seeking to borrow GH¢12.7 billion via treasury bills in January 2024, to finance maturing bills. This is 1.2% lower than that of December 2023. Already, the government has raised GH¢3.223 billion in the first auction of 2024, 15.24% more than the targeted amount. Based on the prevailing strong demand at an average of GH¢4.0 billion per week, analysts expect the authorities to comfortably refinance the upcoming maturities. However, there are likely to be higher targets to finance the 2024 budget deficit and buffer for February 2024 coupon payments on the restructured bonds. T-bills demand surged in December…
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Bond Market: Total Market Turnover Up 18.09% To ¢1.40Bn
12 Dec

Bond Market: Total Market Turnover Up 18.09% To ¢1.40Bn

Wontumi1Business, ,
Trading of Government of Ghana papers in the local bond market regained steam last week as the total weekly volume traded improved 18.09% week-on-week to ¢1.40 billion. The February 2027 (coupon: 8.35%) paper gained traction in last week’s trading, as it matched the February 2030 (coupon: 8.80%) bond, to jointly contribute 60% of total market turnover. Notably, the average yield for the 2027 to 2030 tenors increased by 205 basis points to 20.05%, while the 2031 to 2034 papers traded around 15.72%, down by 96 basis points. Analysts expect trading activity to remain lively in the bond market in the…
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Government To Borrow ¢94.4Bn Via T-Bills In 2024
11 Dec

Government To Borrow ¢94.4Bn Via T-Bills In 2024

Wontumi1Business, ,
Government will borrow ¢94.4 billion via treasury bills in 2024 to finance its expenditure. This includes ¢31.8 billion buffer for auction shortfalls. Analysts believe the government will continue the excess uptakes to build the target buffer. Given the lower inflation and interest rates outlook, the locking-in of the 364-day yield offers a better inflation-adjusted return over the holding period. In November 2023, the government accepted ¢15.3 billion, surpassing the rollover obligation by 45.4% and the offer target by 26.5%. However, investors submitted total bids worth ¢15.6 billion (+14.9% month-on-month), exceeding the T-bill offer target by 29.0%. Importantly, money market liquidity…
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