Last week’s treasury auction recorded strong investor demand for short-term securities, with total bids exceeding the target by GH¢1.74 billion, marking a turnaround after two months.of undersubscription.
Results from the Bank of Ghana showed that the government targeted GH¢4.35 billion across the 91-day, 182-day and 364-day Treasury bills. However, total bids reached GH¢7.83 billion, representing an oversubscription rate of about 80%.
Out of the total bids received, the government accepted GH¢6.09 billion.
The 91-day bill recorded bids of GH¢5.72 billion, of which GH¢4.37 billion was accepted. The 182-day bill received GH¢0.65 billion in bids, with GH¢0.57 billion accepted, while the 364-day bill attracted GH¢1.46 billion, out of which GH¢1.14 billion was accepted.
Analysts believe the turnaround reflects renewed investor interest in short-term securities amid recent sell-offs in the equity market, as investors increasingly rotate into safer and more liquid fixed-income instruments.
Strong investor demand also contributed to a decline in some yields. The yield on the 91-day bill declined by 4 basis points to 4.88%, while the 182-day bill yield rose slightly to 7.03% from 6.97% in the previous auction. Meanwhile, the 364-day bill yield eased by 6 basis points to 10.13%.
Looking ahead, the government seeks to raise GH¢4.30 billion in the next auction to cover upcoming maturities and meet its short-term financing needs.