Ghana Treasury bill auction sees strong investor demand, exceeding target

Ghana's Treasury bill auction saw robust investor interest, with total bids significantly surpassing the government's target. Investors tendered GH¢12.37 billion across 91-day, 182-day, and 364-day bills, while the government accepted GH¢11.55 billion. This oversubscription of approximately 30.3% highlights a strong appetite for government securities. The demand was particularly pronounced for the 364-day Treasury bill, which attracted GH¢8.11 billion in bids, with GH¢7.82 billion accepted. The 91-day bill received GH¢2.95 billion in bids, with GH¢2.60 billion accepted, and the 182-day bill attracted GH¢1.31 billion in bids, with GH¢1.12 billion accepted. Yields showed mixed movement: the 91-day bill yield remained steady at 5.78%, the 182-day bill yield edged up one basis point to 7.68%, and the 364-day bill yield decreased by three basis points to 12.96%. Analysts attribute this strong investor participation to enhanced market liquidity and the appealing risk-free returns offered by Treasury bills, which remain in demand as secure investment instruments. The government continues to rely on the domestic debt market for its financing needs. For the upcoming auction, the government has set a target of GH¢5.87 billion.