Strong investor demand for Treasury bills enabled the government to exceed its latest domestic borrowing target, raising GHS 8.29 billion at the most recent auction against a target of GHS 7.43 billion.
The auction attracted total bids worth GHS 8.44 billion, according to data from the Bank of Ghana, with the government accepting nearly all submissions. The acceptance rate stood at 98.31%, reflecting sustained confidence in short-term government securities.
The amount raised exceeded the target by GHS 868.98 million, highlighting robust liquidity in the market and investors’ continued appetite for low-risk government instruments.
Demand was concentrated overwhelmingly in the 91-day Treasury bill, which accounted for nearly three-quarters of the total amount accepted. The government took up the full GHS 6.04 billion offered by investors under the three-month instrument, underscoring the preference for shorter-term placements.
The 182-day bill attracted bids worth GHS 1.10 billion, with GHS 1.04 billion accepted, while investors submitted GHS 1.30 billion for the 364-day bill, of which GHS 1.22 billion was allotted.
Market analysts say the strong preference for shorter maturities reflects investors’ desire to maintain liquidity and minimise exposure to interest rate and duration risks while still earning attractive returns.
Despite the strong demand, yields remained relatively stable. The 91-day bill cleared at a weighted average rate of 5.04%, the 182-day bill at 7.08%, and the 364-day bill at 10.98%.
Compared to the previous auction, investor participation increased significantly. The government accepted GHS 8.29 billion at the latest sale, up from GHS 5.83 billion recorded in the preceding auction, representing a 42.2% increase.
The outcome provides the government with additional short-term financing flexibility as it continues to manage fiscal obligations, while also demonstrating the domestic market’s capacity to absorb government securities.
Looking ahead, the government is seeking a lower amount of GHS 5.27 billion in the next Treasury bill auction, suggesting confidence in its ability to continue attracting strong investor interest in the domestic debt market.
