The government exhibited a robust fiscal drive, raising GH¢15.32 billion in Treasury bills in November 2023, to offset matured bills amounting to GH¢10.60 billion.
This marked a notable 17.0% increase from October 2023, showcasing the government’s proactive approach to managing its fiscal obligations.
Particularly noteworthy was the heightened investor interest in the 364-day bill, with aggregate bids soaring to GHS¢2.72 billion. However, despite this, the Treasury bill yields experienced a marginal average decline of 0.05%. The 91, 182, and 364-day tenors concluded at 29.5%, 31.76%, and 33.23%, respectively.
Meanwhile, analysts are keenly observing the government’s reliance on Treasury bills, expressing concerns that such dependence may impede a substantial decline in yields anticipated in December 2023.
For the current week, the government aims to raise GH¢3.92 billion, signaling a slight reduction compared to the previous week’s GH¢5 billion plus. This move comes against a backdrop of shifting dynamics in the money market, where interest rates have resumed an upward trajectory after a month-long hiatus.
According to auction results from the Bank of Ghana, rates on Treasury bills witnessed marginal increases:
- The 91-day T-bill edged up to 29.56% from the previous week’s 29.49%.
- Similarly, the 182-day T-bill saw a slight surge to 31.76% from the preceding week’s 31.75%.
- The one-year bill recorded a 21 basis points increase, reaching 33.44%.
These developments reflect the government’s continued reliance on money market borrowing to meet its expenditure requirements, contributing to the observed upward pressure on interest rates.
Ghana’s Treasury bill landscape remains dynamic, with fluctuations in yields and borrowing patterns shaping the financial landscape. Analysts caution that the sustained reliance on Treasury bills may have implications for long-term fiscal sustainability, underscoring the need for a prudent and diversified fiscal strategy.