Last week’s treasury auction demonstrated robust investor interest in short-term securities, with total bids surpassing the target by GH¢1.74 billion, indicating a recovery following two months of undersubscription.
Data from the Bank of Ghana revealed that the government aimed for GH¢4.35 billion across the 91-day, 182-day, and 364-day Treasury bills. However, total bids amounted to GH¢7.83 billion, reflecting an oversubscription rate of approximately 80%.
From the total bids received, the government accepted GH¢6.09 billion.
The 91-day bill attracted bids of GH¢5.72 billion, of which GH¢4.37 billion was accepted. The 182-day bill garnered GH¢0.65 billion in bids, with GH¢0.57 billion accepted, while the 364-day bill drew GH¢1.46 billion, out of which GH¢1.14 billion was accepted.
Analysts suggest that this turnaround signifies renewed investor enthusiasm for short-term securities in light of recent sell-offs in the equity market, as investors increasingly shift towards safer and more liquid fixed-income instruments.
The strong demand from investors also led to a decrease in some yields. The yield on the 91-day bill fell by 4 basis points to 4.88%, while the yield on the 182-day bill increased slightly to 7.03% from 6.97% in the previous auction. Meanwhile, the yield on the 364-day bill decreased by 6 basis points to 10.13%.
Looking forward, the government aims to raise GH¢4.30 billion in the upcoming auction to address forthcoming maturities and fulfill its short-term financing requirements.
