Government exceeds Treasury bill target by 39% as investor demand surges

Investor interest in Treasury bills surged in January 2025, with total bids reaching GHS 40.59 billion. The government accepted GHS 38.45 billion—exceeding its target by approximately 39%. Average weekly bids rose to GHS 7.8 billion, up from GHS 5.3 billion in 2024, reflecting growing investor confidence and market liquidity.

Government surpasses weekly target

In the most recent auction, the government aimed to raise GHS 6.5 billion but received GHS 7.9 billion in bids, exceeding its target by GHS 1.5 billion.

• 91-day bill: Received GHS 5.6 billion in bids, with GHS 5.2 billion accepted.
• 182-day bill: Attracted GHS 1.5 billion in bids, with only GHS 531 million accepted.
• 364-day bill: Saw bids of GHS 2.3 billion, with GHS 2.2 billion accepted.

Declining yields and market outlook

The rejection of higher interest rate bids contributed to a slight decline in yields:

• 91-day bill: Down 10 basis points to 28.41%.
• 182-day bill: Dropped 18 basis points to 28.89%.
• 364-day bill: Dipped 3 basis points to 30.37%.

Although the Monetary Policy Committee has maintained the benchmark lending rate at 27%, analysts suggest further yield declines could be limited due to refinancing pressures.

The Treasury market remains the government’s primary domestic financing avenue, and with yields still averaging above 27%, demand for T-bills is expected to remain strong. The Treasury plans to raise GHS 7.3 billion in the next auction, with expectations of continued high investor participation.