The latest treasury bill auction recorded robust investor interest, with total bids exceeding the government’s target by GH¢1.74 billion, signaling a sharp recovery after two months of undersubscription.
According to the Bank of Ghana, the government aimed to raise GH¢4.35 billion through the 91-day, 182-day, and 364-day Treasury bills. However, bids totaled GH¢7.83 billion, representing an oversubscription rate of around 80 percent. Of this, the government accepted GH¢6.09 billion.
Breaking down the results by tenor:
91-day bills: Bids of GH¢5.72 billion, with GH¢4.37 billion accepted.
182-day bills: Bids of GH¢0.65 billion, with GH¢0.57 billion accepted.
364-day bills: Bids of GH¢1.46 billion, with GH¢1.14 billion accepted.
Analysts attribute the surge in demand to renewed investor interest in short-term government securities following recent equity market sell-offs. Many investors are shifting into safer, more liquid instruments amid market uncertainty.
The strong demand also influenced yields. The 91-day T-bill yield declined by 4 basis points to 4.88 percent, while the 182-day yield edged up slightly to 7.03 percent from 6.97 percent. The 364-day yield fell by 6 basis points to 10.13 percent.
Looking ahead, the government plans to raise GH¢4.30 billion in the next auction to cover upcoming maturities and meet short-term financing needs.
Source: businesspostonline
