The government will borrow GH¢6.32 billion from the treasury market on May 2nd 2025.
This will be done through the issuance of the 91-day, 182-day, and 364-day bills.
The money will be used to settle GH¢6.09 billion in maturing bills.
Analysts expect modest yield compression in the coming weeks as momentum builds around the bond market reopening, supported by ongoing preparations. This will consequently reduce the government domestic interest payments.
“We tip June as the likely optimal timing for the reopening, coinciding with a more stable disinflation path and aligning with the Ministry of Finance’s two-year recovery strategy. In the near term, we anticipate strong demand in the money market, supported by improved investor sentiment”, Databank Research revealed.
It mentioned that selective debt acceptance should further drive yields lower, enhancing the appeal of longer-term issuance to non-resident investors at the reopen.
Last week’s treasury auction attracted total bids of GH¢7.27 billion, of which GH¢6.70 billion was accepted against a target of GH¢6.15 billion.
Yields extended their downward trend, with the 91-day (15.32%), 182- day (16.04%), and 364-day (18.37%) bill rates declining by 13 basis points (bps), 14bps, and 25bps week-on-week, respectively.
