Treasury bills oversubscribed by 140% as investor demand surges
Investor appetite for Ghana’s Treasury bills remained strong at the latest primary market auction, with bids more than twice the government’s target as yields continued to decline across all three instruments.
The Bank of Ghana had set a target of GH¢5.147 billion for the 91-day, 182-day and 364-day Treasury bills under Tender 2022. Investors, however, submitted bids totalling GH¢12.35 billion, representing an oversubscription of 139.9%.
The government accepted GH¢6.53 billion of the bids.
Demand was particularly strong for the 364-day Treasury bill, which attracted GH¢7.50 billion in bids, accounting for about 60.8% of total investor demand.
Of the bids submitted for the one-year instrument, government accepted GH¢2.75 billion, leaving almost GH¢4.75 billion unaccepted.
The 182-day bill received GH¢1.2 billion in bids, with slightly more than GH¢935 million accepted.
For the 91-day instrument, investors tendered GH¢3.5 billion, of which the government accepted GH¢2.8 billion.
Meanwhile, yields continued to fall across the Treasury bill curve, reflecting strong liquidity in the market and sustained demand for government securities.
The yield on the 91-day Treasury bill declined by 13 basis points to 4.94%, from 5.07% at the previous auction.
The 182-day bill also recorded a 23-basis-point decline, with its yield dropping from 7.07% to 6.85%.
The 364-day instrument recorded the biggest decline, falling by 82 basis points from 11.59% to 10.77%.
For the next auction, the government is targeting GH¢6.554 billion through the issuance of 91-day, 182-day and 364-day Treasury bills.
The latest results point to continued strong investor confidence and liquidity in the domestic market, giving the government room to meet its financing needs at progressively lower borrowing costs.