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 GHS 5.6 billion in bids, with GHS 5.2 billion accepted.
• 182-day bill: Attracted GHS 1.5 billion in bids, with only GHS 531 million accepted.
• 364-day bill: Saw bids of GHS 2.3 billion, with GHS 2.2 billion accepted.

Declining Yields and Market Outlook

Analysts attribute the rejection of higher bids to a slight decline in yields:

• The 91-day bill fell by 10 basis points to 28.41%.
• The 182-day bill dropped by 18 basis points to 28.89%.
• The 364-day bill dipped by 3 basis points to 30.37%.

Looking ahead, the Treasury plans to raise GHS 7.3 billion in the next T-bill auction, with expectations of sustained strong demand.