By zainab.joaque@awokonewspaper.sl
Freetown, SIERRA LEONE – The Bank of Sierra Leone’s latest treasury bills (T-Bills) and bonds auction on March 20, 2025, revealed a stark imbalance in investor appetite, with overwhelming demand for 364-day T-Bills while short-term and long-term instruments were largely ignored. This pattern underscores shifting market sentiment, as investors gravitate toward higher-yielding, medium-term securities in an environment of economic uncertainty.
Ahead of the auction, the central bank announced plans to raise significant capital through government securities, offering NLe 4.47 million in 91-day T-Bills, NLe 10.12 million in 182-day T-Bills, NLe 380.14 million in 364-day T-Bills, and NLe 680.19 million in 2-year T-Bonds. However, investor response signaled a clear preference for the 364-day T-Bills, which saw a demand of NLe 594.45 million—well above the initial offer. The central bank accepted nearly all of it, approving NLe 594.18 million in bids.
Conversely, the short-term 91-day T-Bills and the long-term 2-year T-Bonds failed to attract any interest, with zero recorded demand. The 182-day T-Bills saw only moderate uptake, with bids totaling NLe 6.12 million, all of which were accepted by the Bank of Sierra Leone.
Unfazed by the lukewarm response to short-term and long-term offerings, the central bank quickly scheduled another auction for March 27, 2025. This time, it increased the amount of 2-year T-Bonds significantly to NLe 867.24 million, likely in an effort to entice more long-term investment. The revised offerings include NLe 4.47 million in 91-day T-Bills, NLe 9.37 million in 182-day T-Bills, NLe 404.51 million in 364-day T-Bills, and the much larger 2-year bond issuance.
The upcoming auction raises critical questions: Will the higher offering on the 2-year T-Bonds succeed in drawing investor interest? Or will the market continue favoring the 364-day T-Bills as the safest middle ground in an uncertain economic climate? The results will offer key insights into investor confidence, interest rate expectations, and the evolving balance between government financing needs and market sentiment. ZIJ/1/4/2025
 and bonds auction on March 20, 2025, revealed a stark imbalance in investor appetite, with overwhelming demand for 364-day T-Bills while short-term and long-term instruments were largely ignored. This pattern underscores shifting market sentiment, as investors gravitate toward higher-yielding, medium-term securities in an environment of economic uncertainty.){kind=link}