Kofi Ahovi

  The government failed to meet its treasury bills target just a week after achieving an oversubscription, as demand moderated.   According to auction results by the Bank of Ghana, the short-term instruments were undersubscribed by about 20%. The government received GH¢4.20 billion bids from the investors. This was against a target of GH¢5.27 billion. It, however, accepted all the bids tendered. The 91-day bill was once again the most subscribed, as GH¢2.25 billion of the bids were tendered, representing 53.6% of the total bids. The 182-day bill recorded bids worth GH¢802.87. For the 364-day bill, GH¢1.146 billion was tendered. Meanwhile, interest rates continue to rise on the yield curve. The yield on the 91-day bill increased by 26.0 basis points to 5.30%. That of the 182-day bill also went up to 7.13% from 7.08%. Similarly, the yield on the 364-day increased by 39.0 basis points to 11.36%. SECURITIES BIDS TENDERED ( GH¢) BIDS ACCEPTED  ( GH¢) 91 Day Bill ...

  Investor appetite for government securities remained robust at the latest Treasury bills auction, with total bids exceeding the government’s target by 246 percent, even as interest rates declined sharply across the yield curve. The government had set a reduced borrowing target of GH¢4.9 billion for the auction, but total bids tendered reached an estimated GH¢17.2 billion, underscoring sustained liquidity in the financial system and strong demand for short-term risk-free instruments. Out of the bids received, the government accepted GH¢5.8 billion, marginally above the target. Auction results published by the Bank of Ghana show that investor preference continued to tilt towards longer-dated instruments, with the 364-day bill accounting for the largest share of total bids. Approximately GH¢6.9 billion was tendered for the one-year bill, representing about 40.2 percent of total bids. However, only GH¢2.0 billion was accepted, reflecting the government’s cautious borrowing stance ami...

 Ghana's government has witnessed a remarkable surge in investor interest in its treasury bills, with total bids tendered exceeding the target by a staggering 144%. According to auction results released by the Bank of Ghana, the government received bids worth GH¢17.10 billion, significantly surpassing its target of GH¢6.99 billion. The Bank of Ghana ultimately accepted GH¢12.3 billion of the bids. The 364-day bill attracted the majority of the bids, with GH¢6.54 billion tendered, representing 38.2% of the total bids. The government accepted GH¢5.9 billion of these bids. The 91-day bill saw GH¢5.9 billion in bids, with GH¢2.7 billion accepted, while the 182-day bill attracted GH¢4.6 billion in bids, with GH¢3.5 billion accepted. The interest rates on the treasury bills fell across the yield curve, driven by the 250 basis points cut in the policy rate by the Bank of Ghana. The yield on the 91-day bill dropped by 37 basis points to 10.82%, while that of the 182-day bill declined to 12...

  The government recorded a 19% oversubscription of treasury bills for the fifth consecutive week, though at a reduced target. The government received about GH¢4.7 billion of the bids, but accepted a little over GH¢4.7 2 billion of the short-term instruments. The target for the auction was estimated at GH¢3.9 billion.   A little over 40% of the bids came from the 91-day bill.  About GH¢1.948 billion of the bids were tendered. The uptake was GH¢1.943 billion.  For the 182-day bill, GH¢1.2 billion of the bids were tendered. The bids accepted were estimated to the tune of GH¢1.0 billion. Similarly, GH¢1.60 billion of the bids were tendered for the 364-day bill. GH¢1.26 billion of the bids were accepted. Meanwhile, interest rates surged across the shorter end of the market. The yield on the 91-day bill increased by 7.0 basis points to 11.16%. That of the 182-day bill also went up to 12.55%, from 12.52% the preceding week. However, the yield on the 364-day bill declined b...

  Investor confidence in Ghana's short-term debt market is on the rise, with the latest treasury bill auction recording a 38.14% oversubscription. The Bank of Ghana's data shows that investors submitted GH¢8.01 billion in bids, far exceeding the government's target of GH¢5.80 billion. The Treasury accepted GH¢6.95 billion, indicating strong demand for risk-free government securities. The 91-day bill led the pack, attracting GH¢4.90 billion in tenders, followed by the 182-day bill with GH¢2.09 billion and the 364-day bill with GH¢1.01 billion. The yield curve showed mixed movements, with the 91-day bill edging up to 11.08% and the 182-day bill climbing to 12.55%. The 364-day bill saw its yield moderate to 12.70%. The Treasury is targeting GH¢6.94 billion in its next auction, with momentum still strong. This oversubscription demonstrates investors' continued appetite for Ghana's short-term debt instruments.

  The Government of Ghana will borrow GH¢75.700 billion via the treasury market in the final quarter of 2025. Out of this, GH¢8.12 billion will be fresh funds. About GH¢67 billion will be used to rollover maturing funds. The majority of the funds will come from the 91-day treasury bills, which continue to dominate the short-term securities market. Meanwhile, the latest Treasury bill auction underscored soft market sentiment, clearing 55.51% below the GH¢6.58 billion target. Investors tendered a modest GH¢2.93 billion in bids, of which GH¢2.89 billion was accepted, leaving a marginal GH¢36.46 million rejected by the Treasury. The yield curve exhibited a mild steepening as short-term rates adjusted upward with the 91-day bill advancing to 10.70% (+17 basis points), the 182-day to 12.44% (+13 basis points), and the 364-day to 12.92% (+6 basis points). We believe the modest rise in yields reflects repricing considerations to attract demand. This is expected to improve investor interest...

  Investor demand for Treasury bills strengthened last week, exceeding the government’s target by 14.14 percent. According to the latest data from the Bank of Ghana, the Treasury accepted GH¢3.43 billion in bids, compared to a planned GH¢3.01 billion. The 91-day bill attracted the bulk of subscriptions, with GH¢2.57 billion accepted out of GH¢2.58 billion tendered. The 182-day note followed, recording GH¢608 million out of GH¢613 million submitted, while GH¢247 million was taken on the 364-day bill against GH¢250 million tendered. Analysts attribute the oversubscription to sustained investor demand, improved uptake by the Treasury, and a relatively modest issuance target. Meanwhile, yields fell across the short-term curve. The 91-day bill declined by 7 basis points to 10.45 percent, the 182-day dropped by 8 basis points to 12.36 percent, while the 364-day fell by 7 basis points to 12.88 percent. Looking ahead, the government is targeting GH¢5.58 billion in the upcoming auction.

  The Treasury rebounded last week, with the government’s latest Treasury bill auction recording its first oversubscription after four weeks of undersubscription. Latest data from the Bank of Ghana showed that investors tendered a total of GH¢4.38 billion across the 91-, 182-, and 364-day bills. Of this amount, the Treasury accepted GH¢4.36 billion, exceeding a target of GH¢3.78 billion by 15.34 per cent. A breakdown of the bids indicates that GH¢3.62 billion out of GH¢3.63 billion was accepted on the 91-day bill. For the 182-day bill, GH¢566 million was taken from the GH¢576 million submitted, while the 364-day bill saw GH¢182 million accepted out of the GH¢187 million tendered. Analysts attribute the oversubscription to a relatively modest issuance target, combined with increased demand from investors, which provided the Treasury with room to accept nearly all bids submitted. Meanwhile, yields at the short end of the curve edged up marginally, averaging between 10 and 12 per cent...

For the first time this year, the government has fallen short of its Treasury bill target, missing it by GH¢2.8 billion. Data from the Bank of Ghana (BoG) shows that the government aimed to raise GH¢6.14 billion from short-term instruments but received bids totaling GH¢3.32 billion, representing a 45% undersubscription. Despite the shortfall, authorities rejected GH¢1.67 billion in bids. A breakdown of the auction results reveals that out of GH¢3.6 billion tendered for the 91-day Treasury bill, GH¢2.33 billion was accepted. The 182-day bill attracted GH¢741 million in bids, with GH¢574 million accepted. For the 364-day bill, GH¢622 million was tendered, but only GH¢406 million was accepted. Meanwhile, interest rates on Treasury bills remained stable, ranging between 15% and 18%. The 91-day bill dipped by 15 basis points to 15.73% from last week’s 15.88%. The 182-day bill was unchanged at 16.93%, while the 364-day bill saw an 87-basis point increase to 18.85% from 17.98%. Market analyst...

 The government rejected GH¢10.865 billion of bids tendered for treasury bills as demand for the short-term instruments reached a record high. The Treasury registered a 140.5% oversubscription to the tune of GH¢20.49 billion. It accepted GH¢9.634 billion, higher than the target of GH¢7.72 billion. The 364-day bill received the highest bids estimated at GH¢8.11 billion, about 39.56% of the total bids. A little over GH¢3.9 billion were accepted.   For the 91-day bill, about GH¢7.38 billion, representing 36.02% of the total bids were tendered. A little above GH¢4.2 billion were accepted. The 182-day bill also saw bids worth about GH¢5 billion tendered. About GH¢1.43 billion bids were accepted. Meanwhile, interest rates took a nosedive, reducing the government’s cost of borrowing. The yield on the 91-day bill went down by 238 basis points to 24.47%. That of the 182-day bill also declined to 25.38% from the previous 27.80%. Similarly, the 364-day bill was reduced by 178 basis point...

 The government plans to borrow GH¢6.353 billion through Treasury bills today, Thursday, January 23, 2025, amidst expectations of a potential downward adjustment in interest rates after weeks of steady increases. The borrowing will be achieved through the issuance of 91-day, 182-day, and 364-day bills to refinance GH¢5.60 billion in maturing obligations. Interest rates, which currently average around 29%, have risen since the start of the year, signalling concerns in the money market. However, analysts anticipate rate stabilisation in this auction despite the government’s strong reliance on short-term instruments to address its funding needs. Last week, the government recorded its third consecutive oversubscription in the money market, raising GH¢8.84 billion against a target of GH¢6.35 billion and maturing bills worth GH¢5.53 billion. While marginal rejections of bids were noted for the 91-day and 182-day instruments, yields for the 91-day, 182-day, and 364-day bills edged slightl...

 The government has achieved another oversubscription in its latest short-term debt issuance, reflecting strong investor confidence. According to the Bank of Ghana’s auction results, the government mobilized GHS 5.4 billion from its recent Treasury bill issuance, exceeding its target of GHS 4.3 billion by GHS 1.04 billion, representing a 25.58% oversubscription. Investor interest was highest in the 91-day Treasury bill, which accounted for GHS 3.5 billion in bids. The government also accepted GHS 604 million from the 182-day bill and GHS 1.2 billion from the 364-day bill. Yields across all tenors remain high, with rates averaging between 28% and 30%. The 91-day bill’s yield increased by 15 basis points to 28.19%, while the 182-day bill rose by 23 basis points to 28.91%. The 364-day bill recorded a yield of 30.15%, up by 8 basis points. Analysts note a growing appetite for long-term instruments, as evidenced by the GHS 1.2 billion attracted by the 364-day bill. This shift signals re...

  The government recorded a 19.75% over-subscription of treasury bills barely a week after President Mahama won the presidential elections. According to the Bank of Ghana's T-bill auction results, demand for the short-term instruments soared following successful general elections. The government got GH¢8.20 billion from selling the short-term instruments. All the bids were accepted. A little over GH¢6.740 billion were secured from the 91-day bill, representing 82.1% of the total bids. For the 182-day bill, GH¢951.67 million were tendered. The 364-day bill also recorded GH¢508.15 million from the sale of the 364-day bill. Meanwhile, interest rates neared the 30% mark. The yield on the 91-day bill increased by 17 basis points to 27.77%.  That of the 182-day bill was 28.49% from the previous week's 28.32%. The interest rate on the 364-day bill also went up by 3.0 basis points to 29.94%. SECURITIES BIDS TENDERED (GH¢) BIDS ACCEPTED ( GH¢) 91 Day Bill     6.740b...

  The government missed its ambitious treasury bills target by 16.81%. According to the auction results by the Bank of Ghana, the government secured GH¢5.180 billion as against a target of GH¢6.228 billion. This auction is coming after a private legal practitioner filed an application at the Supreme Court to stop the government from issuing T-bills. The results showed that all the bids were accepted. The majority of the bids came from the 91-day bill where GH¢3.942 billion, representing 76.1% of the total bids were tendered. About GH¢653.43 million were however tendered for the 182-day bill. Similarly, the 364-day bill saw an offer of a little over GH¢584 million. Meantime, interest rates went up for the fourth consecutive week. However, the rising interest rates will increase the cost of servicing the domestic instruments. The yield on the 91-day bill was up 14 basis points to 26.96%. Equally, the interest rate on the 182-day bill increased to 27.78% from 27.67% the previous week....

 Government recorded a 15.35% oversubscription of treasury bills sale but at a higher cost. According to auction result from the Bank of Ghana, the government received ¢3.507 billion from the sale of the short term securities. Total bids tendered were estimated at ¢3.535 billion. Chunk of the T-bills sale came from the 91-day bill. ¢2.526 billion was secured, as government accepted almost all the bids. For the 182-day bill, ¢261.69 million was obtained from the bids tendered. In actual fact, the government accepted all the bids. This time around, the bids received for the one-year bill were over three times more than that of the six-month bill. Indeed ¢747.81 were the bids tendered, but the government accepted ¢721.03 of the bids offered. Meanwhile, interest rates shot up across the yield curve. Whilst the 91-day bill went up to 26.09% from 25.57% the previous week, that of the 182-day bill rose 0.31% to 27.59%. The 364-day bill also reached 30.69%, from the 30.49% recorded the pre...

 For the first time in four weeks, government Treasury bills sale was undersubscribed by 23.83% to the tune of ¢2.44 billion. This means demand for the short-term securities dipped, following four consecutive weeks of soaring investor interest. This could be attributed to the significant fall in interest rates despite the investors largely banks having limited opportunity to invest in the financial market. Some analysts believe the investors have shifted their attention to the Bank of Ghana bills which is offering a rate of 28%. According to data from the Bank of Ghana, the government secured about ¢1.41 billion from the 91-day bill, whilst about ¢553 million and ¢468 million were gotten from the 182-day and one-year T-bills. Meanwhile, interest rates remained same despite a significant fall in the past three weeks. The yield on the 91-day went for 18.87%, from the previous week’s 18.52%. The yield on the 6-months bill was however estimated at 21.43% compared with 21.27% a week ago...

 The government beat the cost of its Treasury bills down significantly, securing ¢6.15 billion from the latest auction, about 121.6% oversubscription. It however accepted ¢4.52 billion of the bids from the investors, largely banks. According to results from the Bank of Ghana, the government reduced the pricing of the short term instruments from 35% to a yield of 24.16% for the 91-day T-bills. However, that of the 182-day and 364-day bills were sold at 26.55% and 27.54% respectively. The results further indicate that the 91-day T-bill received bids worth ¢2.73 billion. However, the government accepted ¢1.16 billion. For the 182-day bills, the bids tendered were estimated at ¢1.526 billion. ¢1.16 billon was however accepted by the government. The bids tendered for the 364-day bill was also valued at ¢1.886 billion. Government, however, accepted ¢1.882 billion. The government on Friday, March 3, 2023, rejected all the bids for the short term securities, after raising concerns about th...

  Following a significant progress with the Domestic Debt Exchange (DDE) programme, government Treasury bills (T-bills) sale was oversubscribed by a significant 60.6% as investor confidence rebound. According to the auction results published by the Bank of Ghana, government secured ¢2.053 billion from the short term securities. Chunk of the funds, however, came from the 91-day T-bill, as the investors largely banks purchased ¢1.426 billion. However, government accepted ¢1.57 billion of the bids tendered. The yield shot up slightly to 35.71%, from 35.63% the previous week. For the 182-day T-bill, government accepted all the bids worth ¢491.45 million at an interest rate of 35.75%. It also obtained ¢135.30 million from the sale of the 364-day T-bill at a price of 35.81%. A carefully analysis shows that the yield remained virtually unchanged at 35%. The sale of the short term securities have been mixed in the past few weeks. However, the significant progress by the government on the D...

Finance Minister, Ken Ofori-Atta has assured that government will not touch Treasury Bills (T-bills) under the Domestic Debt Exchange Programme.  According to him, it will be suicidal for government’s own finances and fundraising programmes in the future to touch T-bills as part of the programme. Mr. Ofori-Atta noted that government has conducted a Debt Sustainability Analysis which does not include T-bills. We can’t afford to touch it. Let me assure you, Treasury bills will forever remain sacrosanct. Treasury bills are exempted completely. We have done the sustainability analysis. We are not including treasury bills. That is how government funds its operations”, he reaffirmed. He disclosed this on PM Express Business Edition which will be aired on Joy News at 9pm January 19, 2023 with host, George Wiafe. Treasury Bills Support Government has heavily relied on T-bills to fund its operations after it announced in December 2022, that it will embark on Domestic Debt Exchange Programme...

 Finance Minister, Ken Ofori-Atta says government has put in place measures to minimize the impact of the country’s domestic debt exchange on investors. These measures include some exemptions and external debt restructuring parameters that will be implemented. Mr. Ofori-Atta made the announcement at a press conference organized by the Finance Ministry on Sunday, December 4.  Excerpts of the minister’s address According to him, treasury bills and individual bond holders will not be affected.  Mr Ofori-Atta also reiterated that there will be no haircuts on the principal of bonds.  Meanwhile, domestic bond holders will be compelled to exchange their instruments for new ones.  Excerpts of the minister’s address “Existing domestic bonds as of December 1, 2022, will be exchanged for a set of four new bonds maturing in 2017, 2029, 2032 and 2037.  “The annual coupon on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% in 2025 until maturity....