Treasury Bill Auction Oversubscribed by 72.5% for Third Straight Week as Investor Demand Remains Strong
Investor demand for Ghana's short-term government securities remained resilient for the third consecutive week, with the latest Treasury bill auction attracting bids far above the government's target.
Results released by the Bank of Ghana showed that investors submitted GH¢12.70 billion in bids across the 91-day, 182-day and 364-day Treasury bill tenors, compared with the government's target of GH¢7.36 billion. The auction was oversubscribed by 72.5 percent, underscoring sustained appetite for government debt instruments.
The Treasury accepted GH¢9.98 billion of the bids, raising GH¢2.62 billion more than its target as it continued to capitalize on robust investor demand.
The 364-day Treasury bill emerged as the preferred investment, attracting GH¢8.31 billion in bids. Of this amount, the Treasury accepted GH¢6.35 billion, representing nearly two-thirds of the total funds raised at the auction.
The benchmark 91-day bill received GH¢3.51 billion in bids, with GH¢3.04 billion accepted. The 182-day bill attracted GH¢873.97 million, of which GH¢584.98 million was accepted.
Yields were mixed across the three maturities. The yield on the 91-day bill declined to 5.78 percent from 5.86 percent at the previous auction, while the 182-day bill eased to 7.68 percent from 7.79 percent. In contrast, the yield on the 364-day bill edged up marginally to 13.00 percent from 12.99 percent, suggesting investors continue to demand a premium for holding longer-term government securities.
The latest results extend the strong performance recorded in the previous auction (Tender 2015), which also attracted more than GH¢10 billion in bids. Three consecutive oversubscribed auctions signal sustained investor confidence in Treasury bills and the government's ability to meet its short-term financing needs through the domestic debt market.
The government will seek to maintain the momentum at the next auction, where it plans to raise GH¢9.49 billion to finance its near-term funding requirements.
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