The decline in treasury yields is expected to persist in the near term.
This is despite the sovereign’s strong demand and the recent increase in September’s inflation rate to 21.5%.
Analysts believe the resumption of yield compression reflects a response by investors to the recent cut in the Bank of Ghana’s 56-day bill yields from 29% to 27%.
This follows the monetary policy committee’s sharp reduction of the policy rate to 27%.
The yields on the 91, 182, and 364-day short-term papers experienced marginal declines of 18, 12, and 16 basis points (bps), settling at settling at 25.46%, 26.80%, and 28.52% week-on-week, respectively.
The treasury accepted all bids totalling GH¢3.67 billion, falling short of the target of GH¢5.98 billion, while narrowly covering maturities amounting to GH¢3.0 billion.
Meanwhile, the government plans to raise GH¢4.57bn through the issuance of 91day, 182-day, and 364-day bills to cover GH¢4.23bn in maturing bills on Friday October 11, 2024.
