Strong investor demand pushes treasury bill bids 88% above government target
Demand for Ghana’s Treasury bills remained strong at the latest primary market auction, with investors submitting bids well above the government’s target for the three instruments.
Data from the Bank of Ghana show that investors tendered a combined GH¢11.28 billion for the 91-day, 182-day and 364-day Treasury bills, against a target of GH¢5.99 billion.
The figure represents an 88.2 per cent oversubscription, with investor bids exceeding the government’s target by approximately GH¢5.29 billion.
Despite the strong appetite, the government accepted only GH¢4.88 billion of the total bids submitted.
The 91-day Treasury bill attracted the highest demand, with investors submitting GH¢5.07 billion in bids. The government accepted GH¢4.07 billion, representing about 80 per cent of the bids received.
For the 182-day bill, investors tendered GH¢1.28 billion, of which GH¢526.44 million was accepted.
The 364-day bill also recorded significant investor interest, attracting GH¢4.93 billion in bids. However, the government accepted only GH¢289.70 million.
The relatively modest uptake by the government, despite the strong investor appetite, contributed to a decline in yields across the Treasury bill curve.
The yield on the 91-day bill fell by 16 basis points to 5.46 per cent from 5.62 per cent at the previous auction.
Similarly, the 182-day bill yield declined by 25 basis points to 7.27 per cent, while the 364-day bill yield dropped by 48 basis points to 12.50 per cent from 12.98 per cent.
The latest auction points to a cautious borrowing approach by the government despite strong demand from investors, while continued investor appetite and limited uptake could reinforce the downward trend in Treasury bill yields.
For the next auction, the government is targeting GH¢5.43 billion through the issuance of 91-day, 182-day and 364-day Treasury bills.