Government to Borrow GH¢6.14 Billion on Treasury Market Amid Falling Yields

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.