Investors continued to show strong confidence in Ghana’s short-term government securities, with demand for Treasury bills far exceeding the government’s borrowing target in the latest auction conducted by the Bank of Ghana.
The auction attracted GH¢11.64 billion in bids, representing an 87.2% oversubscription against the government’s target of GH¢6.2 billion.
Although the government did not take up all the bids, it accepted GH¢9.42 billion, indicating that demand remained significantly above the planned amount to be raised.
The 364-day Treasury bill emerged as the clear favourite among investors, attracting GH¢6.02 billion in bids, more than half of the total amount submitted. The government accepted GH¢5.86 billion of those bids.
The 91-day bill received GH¢3.70 billion in bids, with GH¢2.36 billion accepted, while the 182-day bill attracted GH¢1.91 billion, of which GH¢1.19 billion was accepted.
The strong demand for the one-year instrument suggests investors continue to favour locking in higher returns for longer periods.
Short-term yields decline
The auction results also showed a decline in yields on the shorter-dated Treasury bills.
The 91-day bill yield fell by 14 basis points to 5.62%, down from 5.76% at the previous auction.
The 182-day bill yield declined by 12 basis points to 7.52%, from 7.64% previously.
The 364-day bill yield remained unchanged at 12.98%, indicating sustained demand for the longer-term instrument despite stable pricing.
The latest auction underscores continued strong investor appetite for government securities, with bids exceeding the target by more than GH¢5.4 billion, reinforcing Treasury bills’ position as one of the most sought-after investment instruments in the domestic market.
