Government borrowed nearly GH¢ 16.7 billion (GH¢16.689 billion) through treasury bills in June, marking a 13% decrease compared to May, primarily due to June having only four auction days.
Over the month, interest rates saw slight reductions: the 91-day bill dropped by 17 basis points from 25.03% to 24.86%, the 182-day bill decreased by nearly 14 basis points from about 26.94% to 26.80%, and the one-year note also fell by 14 basis points from 27.3% to 27.16%.
Among these, the 91-day bill garnered the highest demand, while the one-year note had the least subscription, indicating a challenge for the government to repay the borrowed funds, as a significant portion matures within three months, despite being used for longer term projects.
Due to ongoing debt restructuring, the government is constrained to short-term borrowing, as new bonds are absent. In the final auction on June 28, the government borrowed GH¢ 2.95 billion, exceeding the GH¢ 2.65 billion target by 12.8%. Patronage for the one-year note remained low at only 2.1%, contrasting sharply with the 78.7% patronage for the 91-day bills.
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With the International Monetary Fund (IMF) urging a “tight monetary stance,” further reductions in treasury bill rates are expected to be modest in the near term.
