The T-bill auction bounced back this week after a six-week slump, registering an impressive 111% oversubscription and signalling renewed investor confidence.
Data from the Bank of Ghana revealed that investors tendered GH₵6.03 billion across the 91-, 182-, and 364-day treasury bills. The Treasury accepted GH₵5.78 billion, nearly doubling its initial target of GH₵2.86 billion.
The 91-day bill led demand with GH₵2.57 billion in bids and GH₵2.56 billion accepted. The 182-day bill followed with GH₵1.64 billion tendered and GH₵1.62 billion accepted, while the 364-day bill received GH₵1.81 billion in bids, accepting GH₵1.58 billion.
This recovery was driven primarily by a low issuance target and increased bank participation after the Bank of Ghana cut policy rates by 350 basis points to 18%. The rate cut made the 56-day bill less attractive, shifting liquidity toward T-bills.
Yields slightly adjusted: the 91-day yield dropped 8 basis points to 11.05%, the 182-day fell 25 basis points to 12.43%, and the 364-day edged up 2 basis points to 13.08%.
Looking forward, the Treasury plans to raise GH₵5.80 billion in the next auction across the three tenors.
Story by: Mercy Addai Turkson #ahotoronline.com