Gov’t targets GHS 3.9bn in upcoming T-Bill issuance to refinance GHS 3.7bn in maturities

The upcoming T-bill auction in Ghana, scheduled for December 15, 2023, is poised to target a gross issuance of GH¢3.98 billion, reflecting a 1.7% week-on-week increase.

This issuance, spanning the 91-day to 364-day bills, aims to refinance impending maturities estimated at GH¢3.71 billion, according to insights from GCB Capital Research.

Despite prevailing tight liquidity conditions in the Ghanaian cedi (GHS), analysts anticipate ample investor demand at the auction to meet the GH¢3.98 billion target.

Projections hinge on the envisaged substantial decline in inflation midweek, a factor expected to recalibrate interest rates on a downward trajectory.

The report also anticipates a heightened investor preference during the festive season, potentially tempering the appetite for T-bills beyond the immediate auction week.

This suggests a nuanced market sentiment influenced by both macroeconomic factors and seasonal dynamics.