Investor confidence in Ghana’s short-term debt market rebounded strongly last week as the government’s treasury bill auction attracted bids far above target, ending nearly two months of undersubscription.
According to results released by the Bank of Ghana, government sought to raise GH¢4.35 billion through the 91-day, 182-day and 364-day Treasury bills but received total bids worth GH¢7.83 billion—an oversubscription of GH¢1.74 billion, representing about 80 percent above target. Of the total bids submitted, GH¢6.09 billion was accepted.
The 91-day bill dominated investor interest with GH¢5.72 billion in bids, out of which GH¢4.37 billion was accepted. The 182-day bill attracted GH¢650 million, with GH¢570 million accepted, while the 364-day bill recorded GH¢1.46 billion in bids, of which GH¢1.14 billion was taken up. The strong demand also pushed yields lower on some instruments, with the 91-day bill falling to 4.88 percent and the 364-day bill easing to 10.13 percent. Government is now targeting GH¢4.30 billion in the next auction to refinance maturing bills and meet short-term funding obligations.
