Government records marginal oversubscription in Treasury Bill sale

The government recorded a modest oversubscription in its latest treasury bill auction, a sharp contrast to the significant oversubscriptions observed in recent weeks.

Data released by the Bank of Ghana showed that the government exceeded its auction target by 7.4 percent, raising GH¢8.7 billion in bids. However, it accepted GH¢7.9 billion of the total amount tendered.

The relatively small oversubscription suggests that investor appetite for short-term Government of Ghana securities declined, largely due to the lower yields offered on the instruments.

The 91-day treasury bill accounted for the majority of investor interest, attracting nearly 70 percent of the total bids. Investors tendered approximately GH¢6.15 billion for the instrument, out of which GH¢5.8 billion was accepted.

For the 182-day bill, bids totaling GH¢2.05 billion were submitted, but the government accepted about GH¢946 million.

The 364-day bill recorded total bids of around GH¢529.46 million, with GH¢480.46 million accepted.

Meanwhile, interest rates declined at the shorter end of the treasury bill market.

The yield on the 91-day bill fell by 11 basis points to 4.71 percent, while the rate on the 182-day bill edged down to 6.28 percent from 6.30 percent recorded the previous week.

In contrast, the yield on the 364-day bill rose slightly by 6 basis points to 9.40 percent.