Government borrowed GH¢19.90bn through T-Bills in March 2024

In March 2024, government raised GH¢19.90 billion through treasury bills, marking a 17% decrease from February's borrowing, Joy Business reports.

A portion of these funds, totaling GH¢14.47 billion, was utilized to refinance maturing debts.

Notably, the yields on treasury bills continued to decline during the period, with the 91-day, 182-day, and 364-day bills closing at 26%, 28.5%, and 29.1%,

Read full articlerespectively. This reflects decreases of 128, 125, and 120 basis points compared to the previous month.

Analysts anticipate a slower decline in yields for April 2024 due to a deceleration in the disinflation process and the recent increase in the Cash Reserve Ratio for banks with loan-deposit ratios below 55%.

Last week, investor demand for T-bills fell below the treasury's target, as banks prepared to increase cash reserves to meet required levels. Consequently, the government accepted all bids, raising GH¢2.35 billion against a target of GH¢4.16 billion, resulting in a decline in target and maturity coverage ratios.

Despite the reduced demand, yields continued their downward trend, dropping by 25 basis points across all tenors. The 91-day and 182-day yields settled at 25.75% and 28.25%, respectively, while the 364-day closed at 28.85%.

For the current week, the government aims to raise GH¢2.81 billion through 91 to 364-day bills to fulfill refinancing obligations amounting to GH¢2.58 billion.