T-Bills: Government borrowed GH¢8.25 billion in April, targets GH¢1.83 billion on May 5

By the end of April 2023, the government borrowed GH¢8.25 billion in treasury bills.

These were used to refinance maturities worth ¢6.3 billion.

In April, the 91-day and 182-day yields saw an increase by about 19.95% (+56 basis points month-on-month) and 22.71% (+85 basis points month-on-month) respectively.

However, the 364-day settled at 27.26% (+160 basis points month-on-month).

Meanwhile, the government is targeting GH¢1.83 billion from treasury bills auction on May 5, 2023.

The target is expected to be generated from the 91, 182, and 364-day treasury bills. This amount is higher than the government’s target of GH¢1.58 billion from last week.

The government secured GH¢3.88 billion from the sale of treasury bills in its latest auction held on March 10, 2023.

This was an oversubscription of the GH¢1.10 billion it was targeting.

The government secured GH¢2.07 billion from the sale of treasury bills in its latest auction held on April 28, 2023.

Despite increasing interest rates, the auction saw an over-subscription of GH¢483 million.

Last week, only the 91-day bill and the 182-day bills were subscribed at an interest rate of 19.95% and 22.71% respectively.

According to the auction results from the Central Bank, the government secured GH¢1.53 billion from the 91-day bill and GH¢537.02 million from the 182-day bill.

Treasury bills have become one of Ghana's only source of borrowing after it was shut out of the international capital market.

SSD/DA