The government surpassed its Treasury bill fundraising target last week after strong investor demand pushed total bids to nearly twice the amount it initially sought to raise.
Results released by the Bank of Ghana showed that investors submitted GH¢10.03 billion in bids for the 91-day, 182-day and 364-day Treasury bills, significantly higher than the government’s target of GH¢5.67 billion.
The auction recorded an oversubscription of 77 per cent, reflecting robust appetite for short-term government securities amid prevailing market conditions.
Taking advantage of the strong demand, the Treasury accepted GH¢7.38 billion in bids, exceeding its financing target by GH¢1.71 billion.
The 364-day Treasury bill emerged as the most attractive instrument, drawing GH¢5.65 billion in investor bids. The government accepted GH¢4.53 billion of that amount, making it the largest contributor to the funds raised.
The 91-day Treasury bill received GH¢2.98 billion in bids, with GH¢1.80 billion accepted, while the 182-day instrument attracted GH¢1.40 billion, of which GH¢1.06 billion was taken up.
On the yield front, the 91-day Treasury bill declined slightly by one basis point to 5.86 per cent from 5.87 per cent in the previous auction. The 182-day bill remained unchanged at 7.79 per cent, while the 364-day bill rose by seven basis points to 12.99 per cent from 12.92 per cent, indicating continued investor preference for higher returns on longer-term securities.
The latest auction represents a significant turnaround from the previous week’s sale, which attracted total bids of GH¢4.16 billion, suggesting renewed investor confidence in government debt instruments despite the current interest rate environment.
For the next auction, Tender 2016, the government is targeting GH¢7.36 billion to finance its short-term borrowing requirements.
