The expected total bid amount received for the November 2024 Treasury Bills Auction was GH¢21.5 billion. This was less than GH¢22.8 billion, the government’s gross aim. The government allowed all bids to surpass the refinancing commitment by 8.3%. With a persistent risk of the uncovered auction in December 2024 as the refinancing obligation increases to GH¢26.1 billion, it fell 5.5% short of the target.
Crucially, in November 2024, investor demand for T-bills rose 27.2% month over month, but it was still insufficient to meet the high auction target.
Unsurprisingly, rates continued to rise in November 2024, averaging 90 basis points (bps) across all T-bills. The primary causes were ongoing Treasury borrowing pressure and fresh uncertainty over near-term inflation.
In addition to the 182-day yield (28.0%) and the 364-day yield (29.8%), the 91-day yield experienced the greatest increase (+100bps) to 27.2%.
Because the 364-day yield does not provide a sufficient buffer against its duration risk, analysts advised the 182-day tenor for investors who have a higher preference for liquidity and fair return.
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