The Ghanaian government plans to borrow about GH¢180 billion via treasury bills in 2024. This amount will be 21% more than the GH¢149.92 billion raised in 2023.
The estimated maturities are GH¢150 billion, reflecting a 28.0% increase over the previous year. Additionally, the government is expected to raise more than 50.0% of the GH¢61.9 billion budget deficit through treasury bills.
According to Databank Research, treasury bills are set to remain the dominant driver of activity on the Ghana Fixed Income Market. The research also noted that domestic investors could remain skewed towards shorter-dated Government of Ghana securities to manage risk exposure.
Yields in 2024 are expected to decline due to a positive inflation outlook, but upside pressures will persist from the government’s high demand for money market funding. Databank Research emphasized that the momentum of yield decline will continue to face headwinds due to a substantial T-bill forecast of GH¢180bn, keeping upside pressures elevated. The maturing obligations are expected to average GH¢2.88 billion per week in 2024, a 28% increase compared to 2023.
In 2023, treasury bills were predominantly oversubscribed in the weekly auction, as investors maintained firm demand for short-term investments to reduce risk exposure. Total bids of GH¢149.92 billion were submitted, exceeding the combined target of GH¢133.71 billion. Matured bills in 2023 totalled GH¢117.61 billion.
It is clear that treasury bills will continue to play a key role in the government’s borrowing plans and the overall dynamics of the Ghana Fixed Income Market.
