The government achieved its treasury target for the second consecutive week, securing GH¢ 4.19 billion, slightly above its GH¢ 4 billion goal.
Despite the modest 3% over-subscription, interest rates rose across all three instruments, suggesting that investor confidence is still not strong. The 91-day bill increased from 25.61% to 25.94%, the 182-day bill from 26.9% to 27.03%, and the one-year note rose from 28.58% to 28.73%. This pushed the 182-day and one-year rates above the 27% monetary policy rate, which was reduced just last month.
The treasury bill participation was steady, although two global rating agencies, Fitch and Moody’s, had recently upgraded Ghana’s ratings.
The lower borrowings in October compared to August and September, may indicate the government’s intention to remain within its budget deficit limits. Market analysts speculate that the International Monetary Fund’s (IMF) recent staff-level review may have influenced this reduced borrowing.
Looking ahead, the government plans to borrow approximately GH¢ 3.9 billion in the next auction on October 25, continuing its trend of lower borrowing.
Source:thehighstreetjournal.com