T-bills auction: Government to borrow GH¢6.49bn; interest rates to plummet further

The government is set to borrow GH¢6.49 billion from the treasury market today, February 28, 2025, through the issuance of 91-day, 182-day, and 364-day treasury bills. This will refinance GH¢6.12 billion in maturing bills.

Investor demand remains strong, but yields are expected to decline for the fourth consecutive time this year as the Treasury aims to reduce borrowing costs amid an anticipated drop in inflation.

The use of the Debt Service Recovery Cedi Account (Sinking Fund) is also expected to improve debt management and create space for longer-term issuances at competitive rates.

Last week, total bids for treasury bills rose 15.8% to GH¢20.49 billion due to improved liquidity, but the government accepted only GH¢9.83 billion. Yields on all tenors dropped significantly, aligning with the Treasury’s pricing strategy.