The government has once again surpassed its Treasury bill target, raising GHS 514 million more than planned in the latest auction.
According to auction results from the Bank of Ghana, the government sought to raise GHS 8.26 billion but received total bids of GHS 8.77 billion, resulting in an oversubscription of 6.22%.
All GHS 6.2 billion tendered for the 91-day Treasury bill was accepted. The 182-day bill attracted bids totalling GHS 1.83 billion, with GHS 1.80 billion accepted. Meanwhile, the 364-day bill received bids of GHS 1.2 billion, but only GHS 746 million was accepted.
Interest rates on Treasury bills continue to decline, averaging between 15% and 18%. The 91-day bill dropped by 186 basis points to 15.88%, while the 182-day bill fell by 204 basis points to 16.93%. The 364-day bill also saw a 101 basis points decline, settling at 17.98%.
However, the pace of rate decline appears to be slowing as the government works to reduce borrowing costs.
For the next auction, the Treasury aims to raise GHS 6.14 billion.
Government Surpasses Treasury Bill Target, Raises Extra GHS 514 Million
In a significant boost to its fundraising efforts, the government has once again exceeded its Treasury bill target, securing an additional GHS 514 million in the latest auction. This reflects growing investor confidence and robust participation in the domestic debt market.
According to the Bank of Ghana’s auction results, the government aimed to mobilize GHS 8.26 billion but ended up receiving total bids amounting to GHS 8.77 billion, representing an oversubscription rate of 6.22%.
A breakdown of the results shows that all GHS 6.2 billion tendered for the 91-day Treasury bill was accepted. The 182-day bill saw total bids of GHS 1.83 billion, out of which GHS 1.80 billion was accepted. Meanwhile, the 364-day bill recorded bids worth GHS 1.2 billion, but only GHS 746 million was accepted, reflecting a more selective approach to long-term borrowing.
Interest rates on Treasury bills continue to show a downward trend, signaling the government’s commitment to reducing borrowing costs. The 91-day bill rate dropped by 186 basis points to 15.88%, while the 182-day bill fell by 204 basis points to 16.93%. Similarly, the 364-day bill rate declined by 101 basis points, settling at 17.98%. However, the pace of decline appears to be slowing, suggesting the market may be nearing a stabilization point.
This achievement underscores the government’s ability to navigate challenging economic conditions while maintaining its focus on fiscal sustainability. The oversubscription highlights sustained demand for short-term government securities, likely driven by improving investor sentiment and liquidity in the financial markets.
Looking ahead, the Treasury has set a target of GHS 6.14 billion for its next auction, as it continues to rely on domestic debt instruments to meet its financing needs. This performance will be closely watched as the government balances its borrowing strategy with efforts to manage interest rate dynamics effectively.
Story by: Mercy Addai Turkson #ahotoronline.com
