Treasury to Borrow GHS 6 Billion to Settle Maturing Debt
The government is set to borrow GHS 6 billion on Friday through the issuance of 91-day, 182-day, and 364-day Treasury bills. This borrowing is aimed at settling some GHS 5.60 billion in maturing bills.
Recent months have seen strong investor participation in Treasury bills, driven by attractive yields in the high-interest-rate environment. This trend persists despite market expectations of a hold in this week’s monetary policy decision.
Analysts attribute the robust demand to the Treasury’s heightened need for liquidity to manage significant upcoming maturities.
Last week, the government achieved its third consecutive oversubscription in the money market, raising GHS 8.84 billion against a target of GHS 6.35 billion and maturing obligations of GHS 5.53 billion.
Yields on Treasury instruments continued to rise, with the 91-day, 182-day, and 364-day bills settling at 28.42% (+8 basis points), 28.96% (+1 bps), and 30.29% (+11 bps), respectively. However, there were marginal rejections for the shorter-dated 91-day and 182-day bills.
This strong performance in the T-bill market underscores the prevailing investor confidence and the government’s reliance on domestic borrowing to finance its obligations.
