The Government of Ghana is set to raise GH¢6.32 billion from the domestic treasury market today, May 2, 2025, through the issuance of short-term instruments — namely the 91-day, 182-day, and 364-day Treasury bills.
According to the Ministry of Finance, the funds will primarily be used to refinance maturing debt obligations, specifically GH¢6.09 billion worth of Treasury bills falling due this week.
Market analysts have noted that the current borrowing strategy aligns with broader efforts to manage domestic debt more efficiently while setting the stage for a potential bond market reopening. Databank Research, in a recent market update, predicted a modest compression in yields over the coming weeks, driven by improving investor confidence and strategic debt issuance.
“We tip June as the likely optimal timing for the reopening, coinciding with a more stable disinflation path and aligning with the Ministry of Finance’s two-year recovery strategy,” the report stated.
In the short term, analysts anticipate strong demand in the money market, bolstered by positive investor sentiment. The government’s selective acceptance of bids is also expected to help drive interest rates lower and increase the attractiveness of longer-term bonds, particularly to non-resident investors.
The market has already begun responding to these dynamics. Last week’s Treasury auction saw bids totaling GH¢7.27 billion, with GH¢6.70 billion accepted — exceeding the target of GH¢6.15 billion.
Yields continued their downward trend, with the 91-day bill falling to 15.32% (down 13 basis points), the 182-day bill to 16.04% (down 14bps), and the 364-day bill to 18.37% (down 25bps) on a week-on-week basis.