Government Exceeds Treasury Bill Borrowing Target in January 2024 By 35.8%
The government successfully borrowed GH¢22.06 billion through treasury notes in January 2024, exceeding the GH¢15.13 billion target amount by almost 35.80%. The 91-day T-bill category had the majority of bids.
Experts predict that this uptake tendency will continue until February 2024, when the Treasury is ready to pay an estimated GH¢4.3 billion in cash coupons on the new bonds. In spite of this, rates are expected to decline as the market follows the path of disinflation and the 100 basis point monetary policy rate cut that was declared at the Monetary Policy Committee meeting in January 2024.
In a recent money market auction, investors oversubscribed the treasury's offer, with total bids amounting to GH¢4.53 billion against a target of GH¢2.86 billion. The government accepted all bids, leading to further declines in yields. The 91-day and 182-day yields contracted to 28.30% (down by 29 basis points) and 30.79% (down by 30 basis points), respectively, while the 364-day yield closed lower at 31.40% (a decrease of 40 basis points).
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