Strong T-bill demand pushes government past GHc1.41bn target

Investor interest in Treasury bills remained strong on the primary market last week, with government raising more funds than initially targeted.

Data released by the Bank of Ghana showed that total bids reached GH¢7.37 billion across the 91-day, 182-day and 364-day Treasury bills, while the government accepted GH¢6.01 billion. This resulted in an oversubscription of about 31%, exceeding the government’s target by more than GH¢1.4 billion.

The performance reflects renewed demand for short-term government securities, following a period of relatively weak appetite. The increase is also linked to a gradual rise in yields as government financing needs continue to grow.

The 364-day Treasury bill attracted the highest interest, recording GH¢5.43 billion in bids. Of this, GH¢4.29 billion was accepted, making it the largest contributor to total funds raised.

For the 91-day bill, investors tendered GH¢1.48 billion, with GH¢1.34 billion accepted. The 182-day instrument saw GH¢461.91 million in bids, of which GH¢378.80 million was taken up by government.

Yields increased across all maturities during the auction. The 91-day bill rose by 43 basis points to 5.73%, up from 5.30% previously. The 182-day bill climbed to 7.69% from 7.13%, while the 364-day bill recorded the sharpest jump, rising to 12.82% from 11.36%.

Market analysts expect continued strong participation in upcoming auctions, as higher yields are likely to sustain investor appetite for government securities.

The government is expected to raise GH¢3.37 billion in its next Treasury bill auction.

Prince Antwi

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