Yields on Ghana’s Treasury bills have continued to decline despite a sharp increase in investor demand, with the latest auction attracting GH¢5.01 billion in bids, nearly double the GH¢2.55 billion recorded at the previous sale.
The latest results indicate growing investor appetite for government securities, even as returns on the short-term investment instruments continue to ease.
Data from the Bank of Ghana (BoG) show that total bids exceeded the government’s GH¢3.54 billion target by GH¢1.47 billion, representing an oversubscription of 41.5%.
The Treasury accepted GH¢4.11 billion of the offers, surpassing its target by GH¢563.96 million.
The 91-day bill dominated investor interest, attracting GH¢3 billion in bids, of which GH¢2.93 billion was accepted.
The 182-day instrument received GH¢1.62 billion in tenders, with GH¢934.50 million accepted, while the 364-day bill attracted GH¢388.45 million, of which GH¢243.15 million was taken up by the government.
Despite the stronger demand, yields across all three tenors recorded further declines, reflecting the changing returns on government borrowing.
The yield on the 91-day bill dropped by four basis points to 4.56%, while that of the 182-day instrument declined by seven basis points to 6.20%.
Similarly, the 364-day bill recorded a 12-basis-point reduction, bringing its yield down to 9.48%.
The latest auction results come ahead of the government’s next Treasury bill issuance, for which the Treasury is targeting GH¢5.57 billion through the sale of the 91-day, 182-day and 364-day instruments.
