Treasury bill auction rebounds as government raises GH¢5.83bn, beats target by 11.9%

Investor appetite for Treasury bills bounced back strongly on the primary market last week, enabling the government to exceed its fundraising target.

In the latest Treasury bill auction, the government raised GH¢5.83 billion, surpassing its target of GH¢5.44 billion by GH¢389.86 million, representing an oversubscription of 11.9%. This marks a recovery after two consecutive weeks of weaker investor demand, suggesting renewed interest in short-term government securities.

Data released by the Bank of Ghana showed that total bids amounted to GH¢6.09 billion across the 91-day, 182-day, and 364-day instruments, with GH¢5.83 billion accepted.

The 91-day Treasury bill remained the most attractive to investors, recording bids of GH¢3.56 billion, out of which GH¢3.51 billion was accepted.

The 182-day bill also saw solid demand, with total bids of GH¢1.71 billion and GH¢1.68 billion accepted.

For the 364-day instrument, investors tendered GH¢815.57 million, with GH¢640.25 million accepted.

Yields edged upward across all tenors. The 91-day bill rose by 2 basis points to 5.01% from 4.99% in the previous auction. The 182-day bill increased by 5 basis points to 7.09% from 7.04%, while the 364-day bill climbed more sharply by 38 basis points to 10.84% from 10.46%.

Market analysts say the gradual rise in yields has helped draw investors back into the market, reflecting improving demand for government securities.

Government is targeting GH¢7.43 billion in the next auction cycle.