Ghana’s money market stayed hot last week, fueled by surging investor interest after the Bank of Ghana slashed its policy rate by 250 basis points to 15.50%.
Demand for government securities skyrocketed, pushing total bids for Treasury bills GH¢5.30 billion above the government’s GH¢6.99 billion target. Bids hit GH¢17.1 billion across 91-day, 182-day, and 364-day tenors, with GH¢12.31 billion accepted, per Bank of Ghana data.
The 364-day bill led the pack for the second straight week, drawing GH¢6.54 billion in bids (GH¢5.97 billion accepted). The 91-day bill saw GH¢5.91 billion tendered (GH¢2.79 billion accepted), while the 182-day bill pulled in GH¢4.65 billion (GH¢3.55 billion accepted).
Yields tumbled: the 91-day rate dropped 37 basis points to 10.82% (from 11.19%), the 182-day fell 28 points to 12.38% (from 12.66%), and the 364-day eased 24 points to 12.82% (from 12.98%).
Analysts point to the policy rate cut, which keeps T-bill yields competitive, plus better liquidity from the central bank’s easing, which boosted money supply and dragged rates lower across the board.
This week’s auction targets GH¢4.98 billion, poised for full uptake amid strong momentum.
Story by: Mercy Addai Turkson #ahotoronline.com