The government has raised GH¢9.98 billion from the latest Treasury bill auction, exceeding its target by GH¢2.62 billion as investor demand for short-term government securities remained robust for the third consecutive week.
The auction, conducted by the Bank of Ghana, attracted total bids of GH¢12.70 billion against a target of GH¢7.36 billion, representing an oversubscription of 72.5%.
The strong demand allowed the Treasury to accept a significantly higher amount than originally planned, signalling continued investor interest in government securities and providing the government with additional short-term financing.
The 364-day Treasury bill accounted for the largest share of investor demand, attracting GH¢8.31 billion in bids. The Treasury accepted GH¢6.35 billion, representing nearly two-thirds of the total amount raised during the auction.
The 91-day bill also recorded strong demand, with investors submitting GH¢3.51 billion in bids. Of this amount, GH¢3.04 billion was accepted.
Meanwhile, the 182-day instrument attracted GH¢873.97 million in bids, with the government accepting GH¢584.98 million.
The latest results show that investors continue to favour longer-dated government securities, despite the marginal increase in the yield on the 364-day bill.
The yield on the one-year bill rose slightly to 13.00% from 12.99% in the previous auction, while yields on shorter-term instruments declined.
The 91-day bill yield fell to 5.78% from 5.86%, while the 182-day bill declined to 7.68% from 7.79%.
The latest auction extends a run of strong performances on the primary market, following an earlier auction that attracted more than GH¢10 billion in bids.
The continued oversubscription of Treasury bill auctions points to sustained investor appetite for government securities and provides the government with some flexibility in meeting its short-term financing needs.
For the next auction, the government is targeting GH¢9.49 billion as it continues efforts to mobilise funds through the domestic money market.
