Interest rates to stabilise; government to borrow GH¢6bn on Friday

Interest rates for treasury bills are expected to stabilize at the next auction on Friday, January 24, 2025, despite strong government demand for short-term instruments to finance maturing bills. Rates currently average around 29% after consistent increases since the start of the year.

The government aims to borrow GH¢6 billion by issuing 91-day, 182-day, and 364-day T-bills to settle GH¢5.60 billion in maturing bills.

Strong investor participation continues, driven by attractive yields and government demand for financing upcoming maturities. Last week, the government recorded its third consecutive money market oversubscription, accepting GH¢8.84 billion against a target of GH¢6.35 billion and maturing bills of GH¢5.53 billion.

Despite some rejections of the 91-day and 182-day bills, yields increased, with the 91-day, 182-day, and 364-day bills settling at 28.42% (+8 basis points), 28.96% (+1 bps), and 30.29% (+11 bps) week-on-week.