Government exceeds treasury Bill Target as Investor demand rebounds

Results from the latest Treasury bill auction showed that the government raised GH¢5.83 billion, exceeding its target of GH¢5.44 billion by GH¢389.86 million. The outcome represents an oversubscription rate of 11.9 percent and signals renewed investor confidence in short-term government securities.

Data released by the Bank of Ghana indicated that investors submitted total bids worth GH¢6.09 billion across the 91-day, 182-day and 364-day Treasury bill tenors. Of this amount, the government accepted GH¢5.83 billion.

The 91-day Treasury bill continued to attract the highest level of investor interest, recording bids of GH¢3.56 billion, with GH¢3.51 billion accepted.

Demand for the 182-day bill also remained strong, as investors tendered GH¢1.71 billion. The government accepted GH¢1.68 billion of the amount offered.

For the 364-day bill, investors submitted bids totaling GH¢815.57 million, of which GH¢640.25 million was accepted.

Yields increased across all tenors during the auction. The yield on the 91-day Treasury bill rose by two basis points to 5.01 percent from 4.99 percent in the previous auction. The 182-day bill increased by five basis points to 7.09 percent from 7.04 percent, while the 364-day bill climbed by 38 basis points to 10.84 percent from 10.46 percent.

Market analysts believe the gradual rise in yields is helping to attract more investor funds into government securities, contributing to the improved demand observed in recent auctions.

Looking ahead, the government is targeting GH¢7.43 billion in its next Treasury bill auction as it continues to meet its short-term financing requirements.