Tbills

Jibran Qureishi, the Head of Africa Research at Standard Bank Group, the parent company of Stanbic Bank, has explained the reasoning behind Ghana’s cautious return to the bond market. According to him, it is unsustainable for government to rely solely on Treasury bills (T-bills) to finance its operations. The Finance Minister, Dr. Cassiel Ato Forson while presenting the 2025 Budget hinted on government’s plan to reopen the domestic bond market. He explained that the reopening will be executed cautiously to establish large-sized benchmark bonds that will enhance market liquidity. Even though, the International Monetary Fund (IMF) had reservations due to the risk of the…

The government is set to borrow GH¢8.26 billion through treasury bills today, March 14, 2025. The funds will be raised via the issuance of 91-day, 182-day, and 364-day bills to refinance GH¢7.91 billion in maturing bills. However, borrowing costs have been declining, with treasury bill yields dropping to nearly 16% last week. Bids in the treasury market have also slowed as some institutional investors shift towards shorter-term instruments for higher returns. This trend is reflected in the Bank of Ghana’s 56-day bill, which surged 65.81% week-on-week to GH¢8.94 billion last week. Analysts predict a near-term yield floor, as reduced participation…

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…

The government plans to raise GH¢7.73 billion this Friday February 21, 2025 through the issuance of the 91-day, 182-day, and 364-day bills. This will cover GH¢7.24 billion in maturing bills. However, the recent rejection of bids by the Treasury indicates that the government would not take all the bids that would be tendered. This would compress excessive yields that have taken a nose dive for the last three weeks. In a striking display of fiscal restraint, the Treasury rejected GH¢8.27 billion bids last week, marking its largest rejection since March 2023. It accepted only GH¢9.43 billion from a total offer…

The government registered a marginal oversubscription of treasury bills auction to the tune of GH¢3.60 billion. According to the auction results by the Bank Ghana, the government recorded 1.38% oversubscription of the T-bills sale. Liquidity has been very tight on the money market for some time now. Per the results of the auction, investors showed more interest in the 91-Day bill than the other financial instruments. About GH¢2.761 billion, representing 76.61% came from the 3.0 months instrument. The uptake was the same as the bids tendered. For the 182-Day bill, GH¢660.62 million of the bids were tendered and all were…

The government saw a 19.4% oversubscription in its treasury bills auction, signalling a resurgence in demand for short-term instruments. According to the Bank of Ghana’s auction results, interest rates have remained stable. The auction raised GH¢5.256 billion from the sale of these short-term instruments. The bulk of the bids were for the 91-day T-bills, with GH¢3.39 billion—accounting for 64.67% of the total—being tendered. All bids were accepted for the 91-day T-bills. Similarly, GH¢1.689 billion was raised from the 182-day bills, with all submitted bids accepted. For the 364-day bills, GH¢167.05 million worth of bids were tendered and all were accepted.…

The government borrowed GH¢19.90 billion through treasury bills in March 2024. This was 17% lower than that of February 2024. Part of the proceeds were used to refinance maturities worth GH¢14.47 billion. Importantly, the yields remained on the downward trend, with the 91-day,182-day and 364-day closing at 26% (128 basis points lower), 28.5% (-125 basis points), and 29.1% (-120 basis points) respectively. Analysts expect a sluggish pace in the decline of yields for April 2024, due to the slowed disinflation process and the recent increase in the Cash Reserve Ratio for banks with loan-deposit-ratios below 55%. Last week, the demand…

Interest rates fell for the fifth consecutive week on the yield curve, according to results of treasury bills auction by the Bank of Ghana. This follows an expected ease in January 2024 inflation. The falling interest rates is also expected to help reduce the cost of the government’s domestic debt marginally. The rate on the 91-day bill went down by 30 basis points to 28.29%. That of the 182-day bill also took a nose dive to 30.79% from the previous week’s 31.09%. The one-year bill also dropped to 31.39% from the preceding week’s 31.79%. Meanwhile, demand for T-bills remained high…