The government’s latest treasury bill auction has recorded another strong performance, with investor appetite for short-term securities pushing total bids well above target for the second consecutive week.
Data from the Bank of Ghana shows that a total of GH¢5.80 billion was tendered against a target of GH¢4.30 billion, representing a 34.8% oversubscription. The government accepted GH¢5.48 billion worth of bids.
The outcome means demand exceeded supply by GH¢1.17 billion, reflecting continued strong interest in government debt instruments despite shifting market conditions.
The 91-day treasury bill dominated the auction, attracting GH¢3.83 billion in bids, of which GH¢3.65 billion was accepted. The 182-day bill recorded GH¢709.83 million in bids, with GH¢671.72 million taken up. The 364-day bill also saw solid participation, drawing GH¢1.26 billion, with GH¢1.15 billion accepted.
Analysts say the strong demand may be linked to investor preference for safer assets amid recent volatility in the equity market, as well as expectations ahead of upcoming monetary policy decisions.
However, yields edged upward across all maturities, suggesting the market continues to price in inflation risks and broader macroeconomic uncertainties.
The 91-day bill rose slightly to 4.91%, while the 182-day increased marginally to 7.04%. The 364-day bill recorded the sharpest jump, climbing to 10.38% from 10.13% in the previous auction.
Despite strong demand, the government rejected some higher-priced bids, indicating a continued focus on maintaining borrowing discipline and controlling financing costs.
Looking ahead, the treasury is expected to raise about GH¢4.49 billion in the next auction as investors position themselves ahead of the Bank of Ghana Monetary Policy Committee decision on interest rates.
