The government has once again experienced an oversubscription in its recent short-term debt issuance, indicating robust investor confidence.
As per the auction results from the Bank of Ghana, the government successfully raised GHS 5.4 billion through its latest Treasury bill issuance, surpassing its target of GHS 4.3 billion by GHS 1.04 billion, which equates to a 25.58% oversubscription.
The highest level of investor interest was observed in the 91-day Treasury bill, which garnered GHS 3.5 billion in bids. Additionally, the government accepted GHS 604 million from the 182-day bill and GHS 1.2 billion from the 364-day bill.
Yields across all maturities remain elevated, with rates averaging between 28% and 30%. The yield on the 91-day bill increased by 15 basis points to 28.19%, while the 182-day bill saw a rise of 23 basis points to 28.91%. The 364-day bill recorded a yield of 30.15%, reflecting an increase of 8 basis points.
Analysts have noted a rising interest in long-term instruments, as demonstrated by the GHS 1.2 billion attracted by the 364-day bill. This trend indicates a renewed investor confidence in the market and a readiness to commit to longer-term investments.
Looking forward, the government plans to raise GHS 5.1 billion in the upcoming Treasury bill auction.
