The Government of Ghana is set to borrow GH¢6.14 billion from the treasury market on Friday, March 21, 2025, through the issuance of 91-day, 182-day, and 364-day Treasury bills. The funds will be used to refinance GH¢5.90 billion in maturing bills.
This amount is lower than the GH¢8.77 billion raised in the previous auction on Monday, March 17, 2025, signaling a shift in market conditions. Analysts expect treasury yields to continue on a downward trajectory, though at a slower pace, with compression expected to be within the 100–200 basis points range.
Market Trends and Expectations
Financial experts suggest that a new equilibrium in Treasury bill yields is emerging as supply and demand stabilize. The consistent decline in bids further supports this view, indicating that a gradual yield floor is forming.
While Treasury bill rates operate separately from the Bank of Ghana’s Monetary Policy Rate (MPR), Databank Research predicts that an anticipated moderate cut in the MPR by the end of the month could reinforce this trend. A reduction in interest rates would support broader efforts to lower borrowing costs for both the government and the wider economy.
Last week’s treasury auction saw a 10.12% week-on-week decline in total bids to GH¢9.2 billion, despite an oversubscription of GH¢514 million. Out of the total bids, GH¢8.77 billion was accepted, exceeding the government’s target of GH¢8.26 billion.
The government’s ability to sustain lower yields in future auctions will depend on demand levels and broader fiscal policy adjustments. However, with continued investor interest and stable liquidity, the treasury market is expected to remain a key funding source for the government’s short-term financing needs.