- Bank of Ghana cuts policy rate to 15.50%, fueling investor demand
- Treasury bill yields decline across all maturities: 91-day at 10.82%, 182-day at 12.38%, 364-day at 12.82%
- Total bids hit GH¢17.1 billion, exceeding government’s GH¢6.99 billion target by GH¢5.30 billion
The money market sustained its positive momentum, driven by increased investor interest following the Bank of Ghana’s 250 basis point reduction in the policy rate to 15.50 percent. This stronger demand for government securities contributed to a further decline in Treasury bill yields, with total bids surpassing the government’s GH¢6.99 billion target by GH¢5.30 billion.
Bank of Ghana data indicate that total bids for the 91-day, 182-day, and 364-day Treasury bills reached GH¢17.1 billion, of which GH¢12.31 billion was accepted. For the second consecutive week, the 364-day bill attracted the highest demand, with GH¢6.54 billion tendered and GH¢5.97 billion accepted.
The 91-day bill recorded GH¢2.79 billion accepted from GH¢5.91 billion in bids, while the 182-day bill saw GH¢3.55 billion taken up from GH¢4.65 billion tendered. On a week-on-week basis, yields declined across all maturities: the 91-day bill fell by 37 basis points to 10.82 percent from 11.19 percent, the 182-day bill dropped 28 basis points to 12.38 percent from 12.66 percent, and the 364-day bill eased 24 basis points to 12.82 percent from 12.98 percent.
Analysts attribute the decline in yields to the recent policy rate cut, which has made Treasury bills more competitive. Improved system liquidity, resulting from the central bank’s easing stance, has also boosted money supply relative to demand, placing further downward pressure on yields across the curve.
Looking ahead, the Treasury plans to issue GH¢4.98 billion in this week’s auction, an amount expected to be fully absorbed given the current market momentum.
