Investor demand for Ghana’s Treasury bills has rebounded strongly, with bids at the latest primary market auction exceeding the government’s target by GH¢904.64 million.
The auction attracted total bids of GH¢3.66 billion across the 91-day, 182-day and 364-day Treasury bills, compared with a target of GH¢2.75 billion.
The latest performance represents a 32.9% oversubscription and marks a reversal from the previous auction, which recorded an undersubscription of about 4%.
The government accepted GH¢2.90 billion of the bids submitted, representing approximately 79.3% of total investor demand.
The 91-day Treasury bill accounted for the largest share of investor interest, attracting GH¢2.08 billion in bids, out of which the government accepted GH¢1.88 billion.
The 182-day instrument received GH¢702.95 million in bids, with GH¢520.57 million accepted, while the 364-day Treasury bill attracted GH¢876.72 million, of which GH¢497.74 million was taken up by the government.
The latest auction also recorded continued declines in Treasury bill yields across all three maturities.
The yield on the 91-day bill fell by two basis points to 4.67%, from 4.69% the previous week. The 182-day yield declined by 11 basis points to 6.37%, from 6.48%.
The 364-day Treasury bill recorded the largest decline, with its yield falling by 15 basis points to 9.83%, compared with 9.98% in the previous auction.
Analysts have attributed the stronger demand largely to the government’s relatively softer borrowing target, alongside continued investor appetite for short-term government securities.
The development suggests renewed investor participation in the Treasury bill market, even as yields continue to trend downward across the three maturities.
For the next auction, the government is targeting GH¢2.24 billion through the issuance of 91-day, 182-day and 364-day Treasury bills.
Story by Ama Frimpomaa
