Gov’t Eyes GHS7.5bn in T-Bills—Big Borrowing Push as Demand, Yields Stay High!
Next week, the government plans to borrow about GHS7.5 billion from the domestic market to meet its short-term financing needs. The Bank of Ghana has set a goal of GHS7.56 billion for the sale of 91-day, 182-day, and 364-day Treasury Bills under Tender 1989.
The amount is almost 90% higher than the GHS3.99 billion goal for the last auction on January 2. This shows that the government needs to borrow more money right away. The government raised GHS4.3 billion at last week’s auction because there was a lot of interest from investors.
The interest rates at that auction were still pretty high. The 91-day bill had an average rate of 11.12 percent, the 182-day bill had an average rate of 12.55 percent, and the 364-day bill had an average rate of 12.33 percent. There was a lot of demand for the securities, which shows that investors are still interested in them even though the yields are high.
The Treasury Bills are still available to individual and institutional investors through the secondary Ghana Fixed Income Market, which can be accessed by licensed market participants. This is because the primary auction is only open to Primary Dealer banks and is done on a wholesale basis.
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