The recent Treasury bill auction conducted by the Bank of Ghana witnessed the government surpass its target once more, securing GH¢458 million in excess of the GH¢5.67 billion goal.
Data provided by the Central Bank indicated that the total bids for the 91-day, 182-day, and 364-day Treasury bills amounted to GH¢10.76 billion, with GH¢6.14 billion being accepted.
This outcome reflects an oversubscription rate of 89.53%, extending the period of excess demand to fifteen weeks and underscoring the ongoing investor interest in short-term sovereign securities.
Demand was robust across all tenors, as investors submitted significant bids for each of the three instruments. The 91-day Treasury bill garnered the most interest from investors, attracting GH¢5.21 billion in bids, of which GH¢3.47 billion was accepted.
For the 182-day bill, investors submitted GH¢1.96 billion, with the central bank accepting GH¢946.44 million. The 364-day bill also experienced considerable demand, with bids totaling GH¢3.60 billion, while GH¢1.72 billion was accepted.
The strong interest in these instruments occurred despite a decline in yields across all tenors, indicating easing pricing conditions and robust market liquidity. This trend further highlights the ongoing preference of investors for government securities, particularly short-term instruments at the beginning of the yield curve.
The rate for the 91-day Treasury bill decreased by 50 basis points to 4.82 percent, down from the 5.32 percent recorded in the previous auction. The yield for the 182-day bill fell by 67 basis points to 6.30 percent from 6.97 percent, while the rate for the 364-day bill dropped by 42 basis points to 9.34 percent.
Market analysts suggest that the continued oversubscription, coupled with declining yields, indicates improving liquidity conditions and sustained investor confidence in government securities, with demand increasingly focused on shorter-dated instruments.
Looking forward, the government has established a target of GH¢8.13 billion for the upcoming Treasury bill auction.
