Government borrowed GH¢115.77bn in half-year 2024, but interest rates declined sharply

The government borrowed GH¢115.77 billion from the treasury market in the first-half of 2024, representing a 70.22% increase over the same period last year.

During the first six months of 2024, the government however received total bids worth GH¢116.07 billion from investors.

Instructively, the money market continued to boom through the period, upholding the upward trend since the onset of Ghana’s economic challenges.

Additionally, investors maintained a strong appetite for treasury bills to balance long-term risk in GoG bonds while raking in competitive real returns through T-bills.

Interest rates fall sharply

Meanwhile, T-bill yields declined sharply through half-year 2024, largely on the positive inflation outlook coupled with the earlier 100 basis points monetary policy rate cut in January 2024.

The government exhibited strong demand for money market funding with weekly uptakes reaching record levels.

The 91-day and 182-day tenors decreased by 449 basis points and 515 basis points to 24.87% and 26.80% at the end of June 24.

The 364-day yield also lost 470 basis points to end the half-year 2024 at 27.79%.