Investor demand for Ghana’s Treasury bills remained strong at the latest primary market auction, with bids almost doubling the government’s target as yields continued to decline across all three maturities.
Data from the Bank of Ghana shows that investors submitted a total of GH¢11.28 billion in bids for the 91-day, 182-day and 364-day Treasury bills.
The government had targeted GH¢5.99 billion, meaning total bids exceeded the target by about GH¢5.29 billion, representing an 88.2% oversubscription.
Despite the strong investor appetite, the government accepted only GH¢4.88 billion of the bids submitted.
91-Day Bill Leads Demand
The strongest demand was recorded for the 91-day Treasury bill, which attracted GH¢5.07 billion in investor bids.
Out of that amount, the government accepted GH¢4.07 billion, representing about 80% of the total bids received for the short-term instrument.
The 182-day bill received GH¢1.28 billion in bids, with the government accepting GH¢526.44 million.
Meanwhile, investors tendered a significantly higher GH¢4.93 billion for the 364-day bill, but only GH¢289.70 million was accepted.
T-Bill Yields Continue to Fall
The strong demand, combined with the government’s relatively modest acceptance of bids, contributed to another decline in Treasury bill yields.
The 91-day bill yield fell by 16 basis points from 5.62% to 5.46%.
The 182-day bill yield also declined by 25 basis points to 7.27%, while the 364-day bill recorded the biggest drop, falling by 48 basis points from 12.98% to 12.50%.
The latest results point to continued strong investor appetite for government securities while the government maintains a controlled approach to borrowing.
Government Targets GH¢5.43bn in Next Auction
For the next Treasury bill auction, the government is seeking to raise GH¢5.43 billion through the issuance of 91-day, 182-day and 364-day bills.
The latest auction will likely keep attention on the direction of Treasury bill yields, particularly as investor demand remains strong and the government continues to limit the amount of funds it accepts.
The combination of high demand and controlled uptake is maintaining downward pressure on T-bill yields across the market.
