T-bills auction: Government to borrow GH¢6.14bn on March 21

The government will borrow GH¢6.14 billion on the treasury market on Friday, March 21, 2025.

This will be done through the issuance of the 91-day, 182-day, and 364-day bills to cover GH¢5.90 billion in maturing bills.

However, this will be lower than GH¢8.77 billion raised on Monday March 17, 2025.

Analysts expect yields to remain on a downward path but a slowdown in compression to the 100–200 basis points range.

This suggests a new yield equilibrium is approaching as supply and demand stabilise.

The consistent decline in bids also reaffirms analysts’ view of a gradual yield floor forming.

While the Monetary Policy Rate operates independently of Treasury bill rates, Databank Research believes an expected moderate cut by month-end could reinforce this trend, supporting broader efforts to lower borrowing costs for both the sovereign and the wider economy.

Despite an oversubscription of GH¢514 million, last week’s treasury auction saw total bids decline by 10.12% week-on-week to GH¢9.2 billion.

Out of this, GH¢8.77 billion was accepted, exceeding the GH¢8.26 billion target.