The latest Treasury bill auction conducted by the Bank of Ghana saw the government surpass its fundraising target, securing GH¢458 million more than the GH¢5.67 billion it initially aimed to raise.
Figures released by the central bank show that investors submitted bids totaling GH¢10.76 billion for the 91-day, 182-day and 364-day Treasury bills. Out of this amount, GH¢6.14 billion was accepted.
This translates into an oversubscription rate of 89.53 percent, marking the fifteenth consecutive week of excess demand and reflecting sustained investor interest in short-term government securities.
Investor appetite was strong across all maturities. The 91-day bill attracted the highest demand, receiving GH¢5.21 billion in bids, with GH¢3.47 billion accepted.
For the 182-day bill, total bids reached GH¢1.96 billion, of which GH¢946.44 million was taken up. Meanwhile, the 364-day bill recorded bids of GH¢3.60 billion, with GH¢1.72 billion accepted.
The strong demand came despite a drop in yields across all tenors, indicating improved liquidity conditions and favourable pricing in the market. It also highlights continued investor preference for short-term government instruments.
The yield on the 91-day Treasury bill declined by 50 basis points to 4.82 percent, compared with 5.32 percent in the previous auction. The 182-day bill rate fell by 67 basis points to 6.30 percent from 6.97 percent, while the 364-day bill dropped by 42 basis points to 9.34 percent.
Analysts say the combination of falling yields and persistent oversubscription signals growing liquidity in the financial system and strong confidence among investors in government securities, particularly those with shorter maturities.
For the next Treasury bill auction, the government is targeting to raise GH¢8.13 billion.
Source: citinews
