Interest rates on treasury bills have marginally reduced
The government intends to borrow GH¢6.493 billion in its auction on February 28, 2025.
The results from the auction on February 21, 2025, showed that GH¢20.499 billion in bids were tendered. Out of this, the government accepted GH¢9.634 billion, which was above its intended target of GH¢7.729 billion.
This means the government rejected GH¢10.865 billion in bids.
The 364-day bill received bids worth GH¢8.110 billion but accepted GH¢3.968 billion.
The 91-day bill received bids worth GH¢7.385 billion but accepted GH¢4.233 billion.
The 182-day bill received bids worth GH¢5.003 billion but accepted only GH¢1.432 billion.
Interest rates, on the other hand, have marginally declined in the last few weeks.
Currently, the rate for the 91-day bill stands at 24.47%, down from last week’s 26.85%, while the 182-day bill fell to 25.38% from 27.80% last week. The interest rate for the 364-day bill also declined from 29.07% to 27.29%.
Last week, the government sold GH¢9.434 billion out of the GH¢17.699 billion tendered.
The recent appetite for short-term instruments indicates strong investor confidence. The government’s rejection of excess bids signals either a cautious borrowing approach or an effort to avoid high interest rates.
Treasury bills remain the government’s primary source of borrowing until it regains access to the international capital market.
SSD/MA
Meanwhile, watch as President Mahama delivers 2025 SONA