Demand for Treasury bills continues to outstrip the government’s issuance target, with latest figures from the Bank of Ghana showing sustained and robust investor appetite.
The latest auction drew GH¢22.67 billion in bids against a target of GH¢6.42 billion, representing a 253 percent oversubscription, slightly higher than the 246 percent recorded the previous week.
Of the total bids submitted, the government accepted GH¢8.99 billion across the 91-day, 182-day, and 364-day instruments.
A breakdown of the results shows that for the 91-day bill, GH¢3.41 billion was accepted out of GH¢7.64 billion tendered. For the 182-day bill, GH¢2.09 billion was taken from GH¢7.27 billion in bids, while the 364-day bill saw GH¢3.49 billion accepted from GH¢7.76 billion offered by investors.
Amid the prevailing liquidity build-up in the market, yields declined sharply across the curve. The 91-day bill rate dropped by 136 basis points to 8.60 percent from 9.96 percent. The 182-day yield fell by 114 basis points to 10.67 percent from 11.81 percent, while the 364-day bill eased by 100 basis points to 11.06 percent from 12.06 percent.
Analysts maintain that beyond strong liquidity, competitive bidding and earlier bid rejections are pushing investors to submit lower bids to secure allocations, thereby accelerating yield compression.
Looking ahead, the government is targeting GH¢9.32 billion in the next Treasury bill auction, signalling continued reliance on the short-term domestic debt market to meet its financing needs.
Source: Citi Business
