GHS 15.71bn Treasury Bill issuance in May surpasses April figures with GHS 966.4m fresh borrowings
The Government in May secured GH¢15.71 billion through the issuance of treasury bills, representing a 7% increase from the GH¢15.60 billion raised in April 2024.
This surge in borrowing, amounting to GH¢966.48 million, occurred despite a continued decline in yields.
Yields on the short-term securities experienced a notable downward trend. The 91-day and 182-day yields fell by 45 basis points and 70 basis points respectively, settling at 25.10% and 26.95%.
Similarly, the 364-day yield decreased by 30 basis points to close the month at 27.95%.
Market analysts attribute the declining yields to an optimistic inflation outlook, suggesting a sustained downward trajectory.
However, they caution that the rate of decline might decelerate due to heightened borrowing targets and a delay in policy rate cuts.
The government’s increased reliance on treasury bills, coupled with the decreasing yields, underscores a complex interplay between fiscal strategy and market conditions. While the positive inflation outlook supports lower yields, the substantial borrowing requirements and monetary policy delays present potential challenges to the anticipated downward trend.
