T-bills auction: Investors submitted GH¢47.5bn bids in March 2025

Investors submitted a total of GH¢47.5 billion in bids for treasury bills in March 2025.

This exceeded the gross target for the month by 47.2%.

However, the government recorded its first undersubscription in 13 weeks at the final two auctions, but continued to reject expensive bids.

It accepted GH¢29.8 billion, below the indicative target by 7.5% (a shortfall of GH¢2.4 billion).

Indeed, demand conditions softened in March 2025 as investors reviewed their fund allocations amidst the drastic decline in nominal yields on T-bills.

Meanwhile, yields tumbled at a doubled pace in March 2025, averaging 863 basis points decline, but with indications of stability emerging at month-end.

The 91-day yield nosedived 877 basis points to 15.71%, the 182-day (16.73%) and the 364-day (18.84%) tumbled by 865 basis points and 845 basis points, respectively.

Given the moderation in demand due to the sharp decline in T-bill rates and given the 17.1% average yield, IS Insights believes the downside scope for yields on the basis of expected disinflation is limited.

“We expect the Treasury’s ongoing squeeze on spending to restrain the borrowing requirement and stabilize yields around current level, pending sufficient decline in inflation in second-half of 2025, which could revive yield decline to the low-to-mid teens”.

Meanwhile, the government will be borrowing GH¢6.68 billion in T-bills on Friday, April 11, 2024.

This will be done through the issuance of the 91-day, 182-day, and 364-day bills to cover GH¢6.43bn in maturing bills.