Rollover cost of T-bills reduced substantially, one-year bill yield drops 19% since December 2024
Last week, the government increased its T-bills uptake reflecting higher financing needs following weeks of below-target acceptances.
Since December 2024, the cost of rolling over Ghana's local currency debt has significantly decreased. Interest rates on the country's six-month and one-year treasury bills have plummeted from nearly 30% in late 2024 to 6.5% and 10.1% respectively, according to S&P Global.
In response to the substantial interest rate cuts, the Ghanaian government has ramped up its T-bill issuance, raising GH¢5.02 billion this week despite the target of GH¢4.34 billion, as reported by the Ministry of Finance. While this temporary funding boost may help ease pressures, analysts predict yields will remain relatively stable due to ongoing high financing demands.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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