The demand for Treasury bills remains higher than the government’s issuance target, as indicated by the latest data from the Bank of Ghana, which reflects a persistent and strong investor interest.
The most recent auction attracted GH¢22.67 billion in bids, surpassing the target of GH¢6.42 billion, resulting in a 253 percent oversubscription, which is a slight increase from the 246 percent recorded the week before.
From the total bids received, the government accepted GH¢8.99 billion across the 91-day, 182-day, and 364-day instruments.
A detailed analysis of the results reveals that for the 91-day bill, GH¢3.41 billion was accepted from GH¢7.64 billion tendered. For the 182-day bill, GH¢2.09 billion was accepted from GH¢7.27 billion in bids, while the 364-day bill saw GH¢3.49 billion accepted from GH¢7.76 billion offered by investors.
In light of the current liquidity build-up in the market, yields have significantly decreased across the curve. The rate for the 91-day bill fell by 136 basis points to 8.60 percent from 9.96 percent. The yield for the 182-day bill decreased by 114 basis points to 10.67 percent from 11.81 percent, while the 364-day bill yield eased by 100 basis points to 11.06 percent from 12.06 percent.
Analysts suggest that in addition to strong liquidity, competitive bidding and previous bid rejections are motivating investors to submit lower bids to secure allocations, thus accelerating yield compression.
Looking forward, the government aims to raise GH¢9.32 billion in the upcoming Treasury bill auction, indicating a continued dependence on the short-term domestic debt market to fulfill its financing requirements.
