Treasury To Borrow GHS 17.4bn In Domestic Debt For July
The Government of Ghana is set to borrow GH¢17.4 billion in July 2024, an 18.8% increase over June’s borrowing requirements.
This necessitates an average weekly bid of GH¢3.5 billion to refinance maturing bills.
Following two months post-Cash Reserve Requirement implementation, which saw an average weekly bid size of GH¢4.1 billion, the Treasury appears poised to secure an additional GH¢3.2 billion in new funding this month.
Investor appetite remains robust for the shorter end of the yield curve.
The 91-day bill garnered GH¢2.5 billion last week, up from GH¢2.3 billion the prior week, closing with a marginal yield decline to 24.79%.
The 182-day bill followed with a yield drop of 5 basis points to 26.75%, while the 364-day bill yield remained steady at 27.79%.
The treasury accepted all bids, covering maturities valued at GH¢2.76 billion.
Market analysts forecast a continued gradual decline in short-term yields, driven by expectations of further reductions in the inflation rate.
On July 12, 2024, the government aims to raise GH¢4.7 billion through the issuance of 91, 182, and 364-day bills to facilitate the refinancing of GH¢4.4 billion in maturing bills.
