T-Bill auction records 41.5% oversubscription, yields ease further
Investor demand for Ghana’s Treasury bills strengthened sharply at the latest primary market auction, with total bids nearly doubling to GH¢5.01 billion from GH¢2.55 billion recorded at the previous sale.
Data from the Bank of Ghana show that the government received GH¢5.01 billion in bids across the 91-day, 182-day and 364-day Treasury bills, exceeding its target of GH¢3.54 billion by GH¢1.47 billion.
The outcome represents an oversubscription of approximately 41.5%, reflecting stronger investor appetite for government securities.
The Treasury accepted GH¢4.11 billion of the bids submitted, exceeding its target by GH¢563.96 million.
The 91-day Treasury bill attracted the highest level of investor interest, recording GH¢3.00 billion in bids. The Treasury accepted GH¢2.93 billion of the amount tendered.
For the 182-day bill, investors submitted bids totalling GH¢1.62 billion, of which GH¢934.50 million was accepted.
The 364-day Treasury bill recorded the lowest demand, attracting GH¢388.45 million in bids. The Treasury accepted GH¢243.15 million.
Yields across all three Treasury bill tenors declined at the latest auction, extending the downward trend in government borrowing rates.
The yield on the 91-day bill fell by four basis points to 4.56%, while the 182-day bill yield declined by seven basis points to 6.20%.
The 364-day bill recorded the largest decline, dropping by 12 basis points to 9.48%.
The continued fall in yields suggests that the government is borrowing at lower rates across the three short-term maturities, even as investor demand strengthens.
For the next Treasury bill auction, the government is targeting GH¢5.57 billion through the issuance of 91-day, 182-day and 364-day bills.
The target represents an increase from the GH¢3.54 billion sought at the latest auction, as the government returns to the domestic market to raise funds.
Aikines Anyomi
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