The government is set to raise GH¢6.353 billion through Treasury bills today, January 23, 2025, amid growing expectations of a possible reduction in interest rates after recent weeks of steady increases.
The funds will be mobilized through the issuance of 91-day, 182-day, and 364-day bills, primarily to roll over GH¢5.60 billion in maturing debt.
Interest rates, currently averaging 29%, have been on an upward trajectory since the start of the year, highlighting concerns in the money market. However, despite the government’s reliance on short-term instruments to address funding gaps, analysts are optimistic that rates may stabilize during this auction.
Last week’s Treasury bill auction saw strong investor appetite, with the government raising GH¢8.84 billion against a target of GH¢6.35 billion, exceeding maturing obligations of GH¢5.53 billion. However, slight bid rejections were observed for the 91-day and 182-day instruments, while yields edged higher—28.42% for the 91-day (+8 basis points), 28.96% for the 182-day (+1 bps), and 30.29% for the 364-day (+11 bps) compared to the previous week.
The elevated yields continue to attract investors, even as monetary policy is expected to hold steady this week. Analysts also point to the Treasury’s need to manage significant upcoming maturities as a driving factor in shaping market activity.
