The government borrowed GH¢19.90 billion through treasury bills in March 2024.

This was 17% lower than that of February 2024.

Part of the proceeds were used to refinance maturities worth GH¢14.47 billion.

Importantly, the yields remained on the downward trend, with the 91-day,182-day and 364-day closing at 26% (128 basis points lower), 28.5% (-125 basis points), and 29.1% (-120 basis points) respectively.

Analysts expect a sluggish pace in the decline of yields for April 2024, due to the slowed disinflation process and the recent increase in the Cash Reserve Ratio for banks with loan-deposit-ratios below 55%.

Last week, the demand for T-bills by investors fell below the treasury’s target, as banks with loan-to-deposit ratios below 55% prepared to increase cash reserves to the respective required levels.

The government consequently accepted all bids, raising GH¢2.35 billion against a target of GH¢4.16 billion.

Accordingly, the target and maturity coverage ratios declined, reflecting levels last seen in April 2022.

However, the yields continued to trend down with a 25 basis points decline across all tenors. The 91-day and 182-day yields settled at 25.75% and 28.25%, respectively, while the 364-day closed at 28.85%.

This week, the government plans to raise GH¢2.81 billion on the 91 to 364-day bills, to settle refinancing obligations worth GH¢2.58 billion.