Investor interest in short-term securities issued by the Government of Ghana remained robust during the most recent primary market auction. Fresh data from the Bank of Ghana indicates that the treasury received total bids amounting to GH¢4.4 billion, against a target of GH¢4.8 billion for the 91-day, 182-day, and 364-day instruments.
Despite the auction falling short of the target by approximately 8.2 percent, the government adopted a cautious acceptance strategy, accepting GH¢4.0 billion of the submitted bids.
The 91-day bill continued to be the preferred choice among investors, representing over half of the total demand as they favored liquidity and lower risk. It garnered GH¢2.55 billion in bids, with GH¢2.54 billion accepted.
For the 182-day bill, bids totaled GH¢771 million, with GH¢758 million accepted, while the 364-day instrument attracted around GH¢1.1 billion in tenders, of which GH¢790 million was accepted.
Yields increased across all tenors, indicating tightening conditions in the money market. The yield on the 91-day bill rose by 3 basis points to 4.94 percent from 4.91 percent the previous week. The yield on the 182-day bill increased by 13 basis points to 6.90 percent from 6.77 percent, while the 364-day bill saw a rise of 15 basis points to 10.12 percent from 9.97 percent.
Looking forward, the government has slightly adjusted its borrowing target, establishing a goal of GH¢4.47 billion for the upcoming auction, which will cover the same range of short-term securities.
