Treasury bill yields in Ghana have continued to decline, reaching the lowest levels in 20 months. The latest data from the Bank of Ghana reveals that the 91-day yield dropped by 307 basis points to 17.72%, while the 182-day yield declined by 401 basis points to 18.97%. The 364-day yield also fell by 271 basis points to 18.98%.
This decline reflects pressure on rates, signaling a shift in the government’s borrowing strategy. The government is prioritizing fiscal consolidation and exploring funding sources. The government exceeded its Treasury bill target, raising GHS 6.22 billion against a projected GHS 5.74 billion.
GHS 4.1 billion in bids were rejected as part of the Treasury’s strategy to filter out bids and reduce borrowing costs. Investor demand was strong, with GHS 6 billion tendered for the 91-day bill, of which GHS 4.4 billion was accepted.
The Treasury aims to raise GHS 8.26 billion in the next auction. The drop in yields is expected to ease the government’s debt servicing burden and free up funds for projects. Bank of Ghana Governor Dr. Johnson Asiama cautioned that lower interest rates on Treasury bills could pose risks to the stability of the local currency.
Asiama said the central bank is monitoring the situation and discussing with the Finance Ministry to balance reducing borrowing costs and maintaining stability..
CNR/Ruth Abla ADJORLOLO
