Rate cut triggers strong comeback in T-Bill demand after weeks of slump
Ghana’s treasury market has recorded its strongest rebound in weeks, as investor interest surged following the Bank of Ghana’s recent policy rate reduction. The turnaround comes after nearly two months of muted activity, with the latest auction showing a dramatic revival of confidence.
Fresh figures indicate that treasury bills were oversubscribed by more than 110%, a clear signal that investors are redirecting funds back into short-term government securities. The market received GH¢6.03 billion in bids against a modest GH¢2.86 billion target, with the Treasury accepting GH¢5.78 billion.
Market analysts say the renewed momentum is largely driven by banks returning to the market. The central bank’s 350 basis point policy rate cut, bringing the benchmark rate to 18%, reduced the appeal of the Bank of Ghana’s 56-day bill and freed up liquidity for T-bills. The smaller issuance target also helped amplify demand.
Interest rates saw mild adjustments across tenures. The 91-day yield slipped to 11.05%, the 182-day dropped to 12.43%, while the 364-day inched slightly higher at 13.08%.
With confidence improving, the Treasury is now targeting GH¢5.80 billion in its next auction, hoping to sustain the market’s renewed momentum.
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