The government borrowed GH¢24.0bn via treasury bills in February 2024, 29.3% higher than its target.
This follows strong investor appetite and softening yield quotes.
Investors submitted total bids worth GH¢24.1 billion (+8.8% month-on-month) while accepted bids were valued at GH¢24.0 billion (+8.9% mon-on-month), sustaining the government’s quest to build buffer for future auction shortfall as indicated in the 2024 budget.
The government exceeded its 2-month target cumulatively by GH¢12.4 billion. This puts it on course to meet its 2024 target buffer of GH¢31.8 billion.
Analysts estimate show that the cumulative excess uptake in the first 2 months of 2024 is 23% more than the excess uptake recorded in the same period in 2023.
Yields fell sharply
Yields fell sharply in February 2024 as the strong money market liquidity outweighed any upside risk from the unexpected uptick in the January 2024 inflation.
The 91-day yield eased by 131 basis points month-on-month to 27.3%, while the 182-day went down by 135 basis points to 29.8%. The 364-day yield also fell by 150 basis points to 30.3%.
Analysts observed the tenor premium between the 91-day and the 182-day at 247 basis points, with that between the 182-day and 364-day bills at 55 basis points.
This suggests that the 182-day is more attractive albeit with reinvestment risk than the 364-day bill.
Latest Stories
-
Samson’s Take: Arrogance of Power, Shameful Policing
8 mins -
Burnley score late to draw with Manchester United at Old Trafford
2 hours -
Bayer Leverkusen extend unbeaten run to 46 games after draw with Stuttgart
3 hours -
Chelsea come from two goals down to draw against Aston Villa
3 hours -
Andre Ayew scores in Le Havre’s 3-3 draw with PSG
3 hours -
GPL 2023/24: Kotoko draw with Medeama; Samartex go 7 points clear of Nations FC
3 hours -
Mahama cuts sod for construction of new multipurpose Jakpa palace in Damongo
3 hours -
NSS management assists Papao fire victims
4 hours -
EXPLAINER: Will dumsor end soon?
4 hours -
IMANI Africa takes on EC, accuses it of lying and publishing half truths
5 hours -
Manasseh Azure calls for investigation and prosecution of those responsible for GRA/SML contract
5 hours -
Kwesi Atuahene: Ghana’s health capital depends on HealthTech – Africa Center for Digital Transformation
6 hours -
13 signs your wife is planning on leaving you and you have no idea
6 hours -
IMANI Africa: Ghana’s EC’s dangerous and pathological conduct
6 hours -
If I speak there will be fire – Salah on Klopp row
7 hours