T-bills auction: Government to borrow GH¢6.68bn on May 16, 2025

The government plans to borrow GH¢6.68 billion tomorrow, May 16, 2025.

This borrowing will fund maturing debt of GH¢6.44 billion.

Last week, the government missed its treasury bills target for the second week in a row.

This occurred despite the Ghana cedi being the best-performing currency globally.

According to Bank of Ghana auction results, there was a slight undersubscription of T-bills.

Yield compression continued this week.

The 91-day and 182-day bills dropped by 7 basis points each to 15.16% and 15.70%.

The 364-day bill fell by 15 basis points to 16.80%.

Analysts suggest that full acceptance of bids shows alignment with market demand.

They believe this is not due to increased borrowing urgency.

The narrowing yield gap between the 91- and 364-day bills indicates a strategic approach by Treasury.

This strategy aims to moderate yield compression ahead of upcoming maturities, especially in the 91-day segment.

In the near term, analysts expect strong demand for the 91-day bill and gradual yield easing.