Treasury bill yields continued their sharp decline last week, reaching their lowest levels in 20 months, with rates averaging between 17% and 19%.
Data from the Bank of Ghana shows that the 91-day yield fell by 307 basis points to 17.72%, while the 182-day and 364-day yields dropped to 18.97% and 18.98%, respectively.
The sustained decline reflects the government’s efforts to reduce borrowing costs as it prioritizes fiscal consolidation and seeks alternative funding sources.
Despite the falling rates, the government exceeded its Treasury bill target, raising GHS 6.22 billion—an 8.4% oversubscription—though GHS 4.1 billion in bids were rejected to filter out high-interest offers.
Investor demand remained robust, with significant interest in the 91-day and 364-day bills. Looking ahead, the Treasury plans to raise GHS 8.26 billion in the next auction.
While the declining yields are expected to ease the government’s debt servicing burden, Bank of Ghana Governor Dr. Johnson Asiama has cautioned that lower Treasury bill rates could pose risks to the stability of the local currency.
“The central bank is actively monitoring the situation and engaging with the Finance Ministry to strike a balance between reducing borrowing costs and maintaining macroeconomic stability,” he stated.
