Kofi Ahovi

  Investor demand for Ghana's short-term government securities remained resilient for the third consecutive week, with the latest Treasury bill auction attracting bids far above the government's target. Results released by the Bank of Ghana showed that investors submitted GH¢12.70 billion in bids across the 91-day, 182-day and 364-day Treasury bill tenors, compared with the government's target of GH¢7.36 billion. The auction was oversubscribed by 72.5 percent, underscoring sustained appetite for government debt instruments. The Treasury accepted GH¢9.98 billion of the bids, raising GH¢2.62 billion more than its target as it continued to capitalize on robust investor demand. The 364-day Treasury bill emerged as the preferred investment, attracting GH¢8.31 billion in bids. Of this amount, the Treasury accepted GH¢6.35 billion, representing nearly two-thirds of the total funds raised at the auction. The benchmark 91-day bill received GH¢3.51 billion in bids, with GH¢3.04 billi...

  Investor demand for Ghana's short-term government securities remained resilient for the third consecutive week, with the latest Treasury bill auction attracting bids far above the government's target. Results released by the Bank of Ghana showed that investors submitted GH¢12.70 billion in bids across the 91-day, 182-day and 364-day Treasury bill tenors, compared with the government's target of GH¢7.36 billion. The auction was oversubscribed by 72.5 percent, underscoring sustained appetite for government debt instruments. The Treasury accepted GH¢9.98 billion of the bids, raising GH¢2.62 billion more than its target as it continued to capitalize on robust investor demand. The 364-day Treasury bill emerged as the preferred investment, attracting GH¢8.31 billion in bids. Of this amount, the Treasury accepted GH¢6.35 billion, representing nearly two-thirds of the total funds raised at the auction. The benchmark 91-day bill received GH¢3.51 billion in bids, with GH¢3.04 billi...

  Government exceeded its Treasury bill target at the latest auction, raising GHS 8.29 billion against a target of GHS 7.43 billion, The auction underscores strong investor appetite for short-term government securities. According to data from the Bank of Ghana, total bids submitted across the 91-day, 182-day and 364-day Treasury bills amounted to GHS 8.44 billion. Of this, the government accepted GHS 8.29 billion, translating into an acceptance rate of 98.31%. The amount raised exceeded the target by GHS 868.98 million, representing 11.7% above the government’s intended borrowing level. Investor demand remained heavily skewed toward shorter-dated instruments, with the 91-day bill accounting for the largest share of accepted bids. The government accepted the entire GHS 6.04 billion tendered for the 91-day bill, representing 72.8% of the total amount raised across all three maturities. For the 182-day bill, investors submitted bids worth GHS 1.10 billion, of which GHS 1.04 billion wa...

  Government securities continued to attract strong investor appetite, with the latest treasury bills auction oversubscribed by 253 per cent as falling interest rates boosted demand and reduced borrowing costs. According to auction results released by the Bank of Ghana, total bids reached GH¢22.67 billion, significantly exceeding the government’s target of GH¢6.41 billion. However, the government accepted GH¢8.99 billion of the bids and rejected approximately GH¢13 billion, reflecting a selective borrowing strategy aimed at managing debt costs. Strong Demand Across All Tenors Investor demand was robust across all maturities, with the 364-day treasury bill attracting the highest volume of bids. A total of GH¢7.76 billion was tendered for the one-year bill, of which GH¢3.48 billion was accepted. Similarly, the 91-day bill recorded GH¢7.64 billion in bids, with GH¢3.41 billion accepted, while the 182-day bill saw GH¢7.26 billion tendered, of which GH¢2.08 billion was taken up. The str...

  After six weeks of subdued activity, the treasury market has seen a strong rebound, with investors showing renewed appetite for short-term government securities. According to fresh trading data from the Bank of Ghana, treasury bills were oversubscribed by 110.84% this week. Investors tendered GH¢6.03 billion across the 91-, 182-, and 364-day bills, of which the Treasury accepted GH¢5.78 billion – almost double its GH¢2.86 billion target. A breakdown of the auction results shows that the 91-day bill dominated demand, recording GH¢2.57 billion in bids and accepting GH¢2.56 billion. The 182-day bill followed with GH¢1.64 billion tendered and GH¢1.62 billion accepted, while the 364-day bill attracted GH¢1.81 billion, with GH¢1.58 billion accepted. The turnaround can be attributed to the weak issuance target and renewed bank participation following the 350bps policy rate cut to 18%. This move compressed returns on the Bank of Ghana's 56-day bill and redirected liquidity into Treasury ...

The latest auction results from the Bank of Ghana show that the government fell short of its Treasury bill target by GHS 393 million, reflecting a 5.19% undersubscription. The government aimed to raise GHS 7.58 billion but received total bids of GHS 7.19 billion. From a stark contrast of selective acceptance in previous auctions, the Treasury took up nearly all available bids in this round, particularly in the shorter tenors, likely in response to upcoming high maturities. All GHS 6.02 billion tendered for the 91-day bill was accepted, along with the full GHS 995 million for the 182-day. For the 364-day, GHS 173 million out of GHS 204 million in bids was accepted. Meanwhile, interest rates continued to decline across the curve. The 91-day rate dropped by 9 basis points to 14.70%, the 182-day fell by 21 basis points to 15.25%, while the 364-day eased by 6 basis points to 15.74%. Looking ahead, the government is targeting GHS 4.55 billion in the next auction.

 Latest data from the Bank of Ghana indicates that government missed its Treasury bill target for the third consecutive time falling short by GHS 3.92 billion. The auction recorded an undersubscription rate of 58.67%, a stark contrast to the previous week’s full acceptance. The government sought to raise GHS 6.68 billion but received total bids of GHS 2.76 billion. The 91-day bill received GHS 4.36 billion in bids, with GHS 2.09 billion accepted. For the 182-day bill, the government accepted GHS 513 million out of GHS 731 million tendered, while the 364-day bill attracted GHS 260 million in bids, of which GHS 154 million was accepted. The weak uptake caused yields to decline further. The 91-day rate fell by 5 basis points to 15.11%, from 15.16% the previous week. The 182-day yield edged down 2 basis points to 15.68%, while the 364-day rate dropped 1 basis point to 16.79%. For market analysts, the weaker investor appetite signals investors may be growing cautious about short-term go...

  Latest figures from the Bank of Ghana show that the government missed its Treasury bill issuance target by GHS169 million. According to the Central Bank’s published results, the government aimed to raise GHS 5.38 billion but received bids totaling GHS 5.21 billion. Despite the shortfall, all bids were fully accepted across all tenors, signaling strong investor demand and the Treasury’s willingness to absorb the full auction amount. For the 91-day bill, GHS 3.85 billion was fully accepted. Similarly, GHS747 million in bids for the 182-day bill and GHS611 million for the 364-day bill were entirely allocated. For market watchers, government’s decision to fully accept all bids tendered could signal strong appetite for money demand from the treasury or government. Interest rates continue to decline, averaging between 15% and 16%, reflecting the BoG’s monetary policy stance aimed at stabilizing inflation and moderating the cost of borrowing. The 91-day yield dropped by 7 basis points t...

 The government missed its treasury auction target by GHS 1.59 billion last week, according to results published by the Bank of Ghana. Total bids submitted amounted to GHS 4.73 billion, falling short of the GHS 6.43 billion target. All bids for the 91-day treasury bill were accepted in full, totalling GHS 2.98 billion. For the 182-day bill, investors submitted GHS 869 million in bids, of which GHS 668 million was accepted. The 364-day instrument attracted GHS 1.43 billion in bids, but only GHS 1.07 billion was accepted—largely through non-competitive bids. The Treasury’s selective acceptance strategy contributed to a marked decline in yields, particularly on the longer end of the curve. Yields fell across all tenors: The 91-day bill dropped 9 basis points to 15.23% (from 15.32% the previous week). The 182-day bill fell by 25 basis points to 15.77%. The 364-day bill recorded the steepest decline, falling 142 basis points to 16.95%, largely due to the absence of competitive pricing. ...

 Treasury bill yields continued their sharp decline last week, averaging between 17% and 19%—the lowest levels in 20 months. Latest data from the Bank of Ghana reveals that the 91-day yield dropped by 307 basis points to 17.72%, down from the previous week’s 20.79%. The 182-day yield declined by 401 basis points to 18.97%, while the 364-day yield fell 271 basis points to 18.98% from 22.69%. These sustained declines reflect ongoing downward pressure on rates. The falling T-bill rates signal a shift in the government’s borrowing strategy, as it prioritizes fiscal consolidation and explores alternative funding sources. Despite the decline, the government exceeded its Treasury bill target, raising GHS 6.22 billion against a projected GHS 5.74 billion—an 8.4% oversubscription. However, GHS 4.1 billion in bids were rejected as part of the Treasury’s strategy to filter out high-interest offers and reduce borrowing costs. Investor demand remained strong, with GHS 6 billion tendered for the...

  Total bids for Treasury bills in January 2025 reached GHS 40.59 billion, with GHS 38.45 billion accepted—exceeding the government’s target by approximately 39%. Investor interest in Treasury bills surged at the beginning of 2025, with average weekly bids rising to GHS 7.8 billion, up from GHS 5.3 billion in 2024. Despite the Monetary Policy Committee maintaining the benchmark lending rate at 27%, analysts suggest that rejecting high-interest bids could lead to a gradual decline in yields. However, strong refinancing pressures may limit this trend. Currently, the Treasury market remains the primary domestic financing avenue, and growing investor confidence has enhanced liquidity. With yields still averaging above 27%, demand for Treasury bills is expected to remain strong. Government Exceeds Weekly Target Again Last week, the government aimed to raise GHS 6.5 billion but received bids totalling GHS 7.9 billion, surpassing its target by GHS 1.5 billion. 91-day bill:  Received ...

 For the third consecutive time, the government has exceeded its Treasury bill (T-bill) target, surpassing it by GHS 2.5 billion. The latest auction results from the Bank of Ghana reveal that while the government aimed to raise GHS 6.3 billion, it received bids totaling GHS 8.8 billion. This led to an  oversubscription of 39.14 percent in the money market. Investor interest was particularly strong for the 91-day Treasury bill, which attracted GHS 5.64 billion in bids out of the GHS 5.68 billion tendered. The 182-day bill followed closely, drawing in GHS 1.30 billion in bids from a total of GHS 1.31 billion. The 364-day bill also performed well, attracting all GHS 1.8 billion offered. The rejected bids were likely those that fell outside the yield range set by the Treasury. This surge in demand comes against a backdrop of rising yields on Treasury bills, with interest rates averaging between 28% and 30%. The yield on the 91-day bill increased by 8 basis points to 28.42 percent,...

  The government is expected to borrow approximately GH₵200 billion from the Treasury bill market in 2025, representing a reduction from an estimated GH₵220 billion in 2024, according to Databank Research. This projection reflects an average weekly borrowing of GH₵3.9 billion, down from GH₵4.2 billion in the previous year. In its 2025 Ghana Market Outlook report, Databank Research attributes the decline in short-term borrowing to improved access to alternative funding sources and a strategic pivot toward long-term securities. This shift aligns with Ghana’s broader economic recovery efforts and increased access to international financial markets, offering the government greater flexibility in exploring sustainable financing options. The transition to long-term instruments is anticipated to take full effect after the first quarter of 2025. In 2025, we foresee a notable moderation in the Treasury’s demand for money market funding, driven by improved access to alternative funding sourc...