Treasury bill auction oversubscribed by 87.2% as investor demand remains strong

Demand for government securities remained robust at the latest Treasury bill auction, with investor bids exceeding the government’s target by 87.2%, according to data from the Bank of Ghana.

The auction attracted total bids of GH¢11.64 billion against a target of GH¢6.2 billion, resulting in excess demand of more than GH¢5.4 billion.

The government accepted GH¢9.42 billion of the bids submitted across the 91-day, 182-day and 364-day Treasury bills, reflecting continued strong investor appetite for government securities.

The 364-day Treasury bill recorded the highest demand, attracting bids worth GH¢6.02 billion. Of this amount, the government accepted GH¢5.86 billion.

The 91-day bill received GH¢3.70 billion in bids, with GH¢2.36 billion accepted, while investors tendered GH¢1.91 billion for the 182-day bill, of which GH¢1.19 billion was accepted.

The 364-day instrument therefore accounted for more than half of the total bids submitted, highlighting investors’ preference for the longer-dated security.

Yields recorded mixed movements across the Treasury bill curve.

The yield on the 91-day bill declined by 14 basis points to 5.62%, from 5.76% at the previous auction. Similarly, the yield on the 182-day bill fell by 12 basis points to 7.52%, from 7.64%.

The yield on the 364-day Treasury bill, however, remained unchanged at 12.98%.

The latest auction results point to sustained investor confidence in government securities, with demand comfortably exceeding the amount the government had targeted to raise.