The Government of Ghana is set to raise GH¢6.32 billion from the domestic treasury market on Friday, May 2, 2025. The funds will be mobilized through the issuance of 91-day, 182-day, and 364-day treasury bills.
This move is primarily aimed at refinancing GH¢6.09 billion worth of maturing securities, helping the government manage its short-term debt obligations without increasing overall liabilities.
Market analysts foresee continued yield compression in the weeks ahead. According to Databank Research, positive investor sentiment and anticipation of a bond market reopening are fueling this trend.
The firm predicts that June could be a strategic period for the government to reopen the bond market, aligning with a more stable disinflation path and the Ministry of Finance’s broader two-year economic recovery strategy.
“We expect strong demand in the money market in the short term, driven by improved investor confidence,” Databank noted.
The research also emphasized that selective debt acceptance may push yields even lower, potentially attracting non-resident investors to longer-term instruments.
Last week’s auction demonstrated strong investor interest, with total bids reaching GH¢7.27 billion. The government accepted GH¢6.70 billion, well above the GH¢6.15 billion target.
Meanwhile, interest rates continued their downward trend. The 91-day bill dropped to 15.32%, the 182-day bill to 16.04%, and the 364-day bill to 18.37%, reflecting weekly declines of 13, 14, and 25 basis points, respectively.
As the government continues to balance debt management with market conditions, all eyes will be on investor response in the upcoming auction.
