The government will borrow ¢2.66 billion on the treasury market today July 21, 2023.

This will be done via the issuance of the 91-day, 182-day and the 364-day bills to cover estimated maturities worth ¢2.50 billion.

Analysts argue that the notable spread of ¢164.44 million between the target and upcoming maturities highlights the government’s reliance on short-term funding.

They believe the treasury will likely accept higher yields to achieve its auction target.

Last week, the government accepted all treasury bids, translating to an uptake of ¢2.13 billion. It recorded about 19.5% oversubscription of its T-bills sale.

However, the cost of borrowing the domestic instrument went up for the 15th consecutive week.

According to the result published by the Bank of Ghana, the government got about ¢2.12 billion from the sale of short-term instruments.

A chunk of the bids came from the 91-day T-bill, where ¢1.812 billion were mobilised. The government, however, accepted all the bids tendered.

Again, the government accepted all the ¢313.59 million tendered for the 182-day bill.

Meanwhile, interest rates continue to surge along the yield curve.

Yield on the 91-day increased 29 basis points to 24.69%, while the 182-day gained 38 basis points to 26.41%. The 364-day yield remained unchanged at 29.65%.