Ghana’s latest Treasury bill auction marked the seventh consecutive oversubscription this year, highlighting strong investor demand even as the government showed restraint in borrowing.
Investors bid GHC22.670 billion last Friday—253.40% above the GHC6.415 billion target—across 91-, 182-, and 364-day tenors. Yet the government accepted just GHC8.99 billion (about 40% of bids), rejecting over GHC13 billion to maintain discipline.
This approach paid off, with yields dropping across the board:
91-Day Bill: GHC7.640 billion bid; GHC3.414 billion accepted at 8.61% yield.
182-Day Bill: GHC7.266 billion bid; GHC2.088 billion accepted at 10.68% yield.
364-Day Bill: GHC7.762 billion bid; GHC3.489 billion accepted at 9.96% yield.
The 353.40% subscription rate underscores Treasury bills’ status as a safe haven amid high liquidity. By capping intake, the government signals fiscal prudence, potentially driving yields lower in coming auctions.
Story by: Mercy Addai Turkson#ahotorfmonline.com