The government borrowed GH¢15.60 billion via treasury bills in April 2024, a 21.61% decrease compared to March 2023. Despite underperforming its target in four out of the five auctions settled in April 2024, the government remained focused on trimming T-bill yields.
The government missed its gross monthly target by 9.73% and fell 3.90% short of matured bills. However, the 91-day T-bill yield shed 45 basis points to close at 25.55%, while the 182 and 364-day yields lost 85 basis points each to end the month at 27.65% and 28.25%, respectively.
Upside pressures persist due to inflationary risks from the recent increase in ex-pump fuel and transport prices. Nevertheless, analysts expect the favorable inflation outlook to positively impact treasury yields in the money market.
In a recent money market auction, T-bills were oversubscribed, with total bids exceeding the treasury’s target. The treasury accepted all bids worth GH¢3.47 billion, surpassing the auction target by 17.07% and matured bills by 26.74%. Yields continued to decline, with the 91-day T-bill falling 10 basis points to 25.45%.
