Investor interest in Ghana’s Treasury bills has shown notable growth at the recent primary market auction, with total bids significantly surpassing the government’s target for the three instruments.
Investors submitted a total of GH¢12.37 billion for the 91-day, 182-day, and 364-day Treasury bills, while the government accepted GH¢11.55 billion.
With the government’s target established at GH¢9.49 billion, the auction experienced an oversubscription of approximately 30.3%, indicating a robust appetite among investors for government securities.
Particularly strong demand was noted for the longer-dated 364-day Treasury bill, which garnered the highest level of investor interest.
The 91-day bill attracted bids totaling GH¢2.95 billion, of which GH¢2.60 billion was accepted. The 182-day bill received bids amounting to GH¢1.31 billion, with GH¢1.12 billion accepted.
The 364-day bill saw the highest demand, drawing GH¢8.11 billion in bids, of which GH¢7.82 billion was accepted.
Yields exhibited a mixed trend across the curve. The yield on the 91-day bill remained stable at 5.78%, while the yield on the 182-day bill rose by one basis point to 7.68%, up from 7.67%. Conversely, the yield on the 364-day bill decreased by three basis points to 12.96%, down from 12.99%.
Analysts attribute the strong participation from investors to enhanced market liquidity and the appealing risk-free returns provided by Treasury bills, amidst ongoing demand for relatively secure investment options.
The favorable outcome of the auction occurs as the government continues to depend on the domestic debt market to fulfill its financing needs.
For the upcoming auction, the government has set a target of GH¢5.87 billion for the 91-day, 182-day, and 364-day Treasury bills.
