After six weeks of subdued activity, the treasury market has seen a strong rebound, with investors showing renewed appetite for short-term government securities. According to fresh trading data from the Bank of Ghana, treasury bills were oversubscribed by 110.84% this week.
Investors tendered GH¢6.03 billion across the 91-, 182-, and 364-day bills, of which the Treasury accepted GH¢5.78 billion – almost double its GH¢2.86 billion target.
A breakdown of the auction results shows that the 91-day bill dominated demand, recording GH¢2.57 billion in bids and accepting GH¢2.56 billion. The 182-day bill followed with GH¢1.64 billion tendered and GH¢1.62 billion accepted, while the 364-day bill attracted GH¢1.81 billion, with GH¢1.58 billion accepted.
The turnaround can be attributed to the weak issuance target and renewed bank participation following the 350bps policy rate cut to 18%. This move compressed returns on the Bank of Ghana's 56-day bill and redirected liquidity into Treasury bills.
Yields moderated slightly across most maturities, with the 91-day rate edging down by 8 basis points to 11.05%, and the 182-day bill declining by 25 basis points to 12.43%. The 364-day bill inched up by 2 basis points to 13.08%.
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