Traders submitted a complete of GH¢47.5 billion in bids for treasury payments in March 2025.
This exceeded the gross goal for the month by 47.2%.
Nonetheless, the federal government recorded its first undersubscription in 13 weeks on the ultimate two auctions, however continued to reject costly bids.
It accepted GH¢29.8 billion, beneath the indicative goal by 7.5% (a shortfall of GH¢2.4 billion).
Certainly, demand circumstances softened in March 2025 as traders reviewed their fund allocations amidst the drastic decline in nominal yields on T-bills.
In the meantime, yields tumbled at a doubled tempo in March 2025, averaging 863 foundation factors decline, however with indications of stability rising at month-end.
The 91-day yield nosedived 877 foundation factors to fifteen.71%, the 182-day (16.73%) and the 364-day (18.84%) tumbled by 865 foundation factors and 845 foundation factors, respectively.
Given the moderation in demand because of the sharp decline in T-bill charges and given the 17.1% common yield, IS Insights believes the draw back scope for yields on the premise of anticipated disinflation is restricted.
“We count on the Treasury’s ongoing squeeze on spending to restrain the borrowing requirement and stabilize yields round present degree, pending enough decline in inflation in second-half of 2025, which may revive yield decline to the low-to-mid teenagers”.
In the meantime, the federal government might be borrowing GH¢6.68 billion in T-bills on Friday, April 11, 2024.
This might be completed by way of the issuance of the 91-day, 182-day, and 364-day payments to cowl GH¢6.43bn in maturing payments.
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