Despite the Bank of Ghana's recent cut in the Monetary Policy rate from 29% to 27%, Treasury bill (T-bill) yields remain high due to the government's substantial domestic financing needs and tight market liquidity.
The latest auction saw yields rise, with the 91-day T-bill reaching 25.20%, the highest since October 2023.
The auction underscored its target, meeting only 64% of the GH¢7.44 billion goal, reflecting the government's financing pressures.
Analysts expect elevated yields to persist in the near term, as the Treasury plans to offer GH¢5.98 billion in T-bills this week to cover maturing obligations.
Read full article