The government’s short-term borrowing interest continued to draw significant investor demand last week, as the Treasury surpassed its issuance goal by GH¢2.08 billion.
Data from the Bank of Ghana indicates that total bids for the 91-day, 182-day, and 364-day Treasury bills amounted to GH¢25.20 billion.
Out of this total, GH¢11.41 billion was accepted, despite a target of GH¢9.32 billion.This demonstrates a calculated issuance approach in light of changing liquidity conditions and falling yields.
The results reflect an oversubscription rate of 170.3 percent, extending the period of excess demand to thirteen consecutive weeks and reinforcing a persistent investor interest in short-dated sovereign instruments.
An analysis of the auction results reveals that the 91-day bill attracted GH¢8.60 billion in bids, with GH¢3.18 billion accepted.
The 182-day bill received GH¢7.22 billion in tenders, of which GH¢2.45 billion was allocated. In contrast, the 364-day bill experienced GH¢9.38 billion in bids, with GH¢5.78 billion accepted, representing the largest portion of the total allocation, underscoring ongoing investor preference for securing relatively higher yields on the longer end of the short-term curve. Yields have continued to decline across all tenors.
The 91-day bill decreased by 215 basis points to 6.45 percent. The 182-day bill saw a more significant drop, falling 249 basis points to 8.18 percent from 10.67 percent. The 364-day bill eased by 86 basis points to 10.20 percent from 11.06 percent.
Looking forward, the Treasury has established a lower target of GH¢5.81 billion for Tender 1996, in contrast to GH¢9.32 billion in the recently concluded auction, indicating a possible reduction in short-term borrowing needs amid strong demand conditions.
