Government Borrows GHS 115.77 Billion from Treasury Bill Market in H1 2024, Marking 70.22% Increase Year-on-Year

The Government borrowed GH¢115.77 billion from the treasury market in the first half of 2024, a significant 70.22% increase compared to the same period last year.

This surge in borrowing underscores the government’s robust demand for market funding amid ongoing economic challenges.

During the first six months of 2024, investors submitted total bids worth GH¢116.07 billion, reflecting a continued strong appetite for treasury bills.

This investor interest has been driven by the need to balance long-term risks associated with Government of Ghana (GoG) bonds while securing competitive real returns through T-bills.

Money Market Thrives Amid Economic Uncertainty

The money market has maintained its upward trend, continuing to boom throughout the first half of 2024.

This growth trajectory has been evident since the onset of Ghana’s economic difficulties, with investors flocking to the relative safety of treasury bills.

T-Bill Yields Decline on Positive Inflation Outlook

T-bill yields declined sharply in the first half of 2024, influenced by a positive inflation outlook and a 100 basis points cut in the monetary policy rate in January 2024.

The 91-day and 182-day tenors saw substantial decreases of 449 basis points and 515 basis points, ending June 2024 at 24.87% and 26.80% respectively.

Similarly, the 364-day yield dropped 470 basis points to 27.79%.

Record Weekly Uptakes Highlight Strong Demand for Money Market Funding

The government’s strong demand for money market funding was evident, with weekly uptakes reaching record levels.

The trend highlighted the government’s reliance on short-term securities to navigate its funding needs amid ongoing economic pressures.

Source:norvanreports.com