Investor confidence returns as Treasury Bills oversubscribed after 6 weeks

After six weeks of muted activity in the treasury market, investor confidence rebounded sharply this week, according to fresh data from the Bank of Ghana.

Treasury bills were oversubscribed by 110.84%, signalling a renewed appetite for short-term government securities. Investors tendered a total of GH¢6.03 billion across the 91-, 182-, and 364-day bills, with the Treasury accepting GH¢5.78 billion—nearly double its GH¢2.86 billion target.

A breakdown of the auction results shows that the 91-day bill dominated demand, attracting GH¢2.57 billion in bids, of which GH¢2.56 billion was accepted. The 182-day bill recorded GH¢1.64 billion tendered and GH¢1.62 billion accepted, while the 364-day bill drew GH¢1.81 billion in bids, with GH¢1.58 billion accepted.

Analysts attribute the turnaround primarily to the modest issuance target and a surge in bank participation following the Bank of Ghana’s 350-basis-point policy rate cut to 18%. The rate adjustment compressed returns on the central bank’s 56-day bills, redirecting liquidity into treasury bills.

Yields moderated slightly across most tenures. The 91-day bill rate edged down 8 basis points to 11.05% from 11.13% the previous week, while the 182-day bill declined by 25 basis points to 12.43%. The 364-day bill, however, inched up 2 basis points to 13.08%.

Looking ahead, the Treasury plans to mobilize GH¢5.80 billion in its next auction across the three tenures.