For the first time in a month, the government has achieved an oversubscription in its treasury bills (T-bills) auction, a development that reflects growing investor confidence in short-term securities.
According to auction results from the Bank of Ghana, the sale exceeded expectations with a modest 2.81% oversubscription, attracting a total of GH¢6.865 billion in bids against a target of GH¢6.678 billion. However, the government accepted GH¢6.744 billion, rejecting GH¢121.7 million worth of bids.
The 91-day T-bill dominated the auction, accounting for a substantial 84.4% of the total bids. Investors tendered GH¢5.799 billion for the short-term instrument, of which GH¢5.677 billion was accepted.
For the 182-day bill, the auction received GH¢908.44 million in bids, all of which were accepted. Similarly, the 364-day bill saw GH¢157.94 million tendered, with all bids approved.
Interest rates on a decline
Despite the oversubscription, interest rates on treasury bills continued their downward trajectory, albeit at a slower pace. The yield on the 91-day bill declined by 19 basis points, settling at 15.45%, while the 182-day bill dropped to 16.21% from 16.50%. Similarly, the 364-day bill recorded an 18-basis-point decrease, ending at 18.65%.
This trend in declining yields is consistent with the government’s broader efforts to reduce borrowing costs and manage public debt sustainably.
Strategic Focus on Industrial Transformation
In related developments, Minister for Trade, Agribusiness, and Industry Elizabeth Ofosu-Adjare highlighted the government’s commitment to leveraging key sectors for economic growth. Speaking at an industry forum, she emphasized the strategic importance of the pharmaceutical sector, describing it as pivotal to both public health and Ghana’s industrial transformation agenda.
“The pharmaceutical industry is not just a critical component of our healthcare system but also a driver of innovation, job creation, and economic growth. As a government, we are committed to creating an enabling environment for its development,” the Minister stated.
Securities Bids Tendered (GH&) Bids Accepted (GH&)
91-Day – Bill 5.799 Billion 5.677 Billion
128-Day – Bill 908.44 Million 908.44 Million
364-Day -Bill 157.94 Million 157.94 Million
Total 6.865 Billion 6.744 Billion
Target 6.6.678 Billion
Auction Results Summary
The auction results signal robust market participation and confidence in government securities, even as the administration works to align its fiscal policies with macroeconomic stability.
Story by: Mercy Addai Turkson #ahotoronline.com
