77% Oversubscribed as Investors Pour GH¢10bn into Government Auction
Amid Strong Market Demand
By Prince Ahenkorah
Investor appetite for Treasury bills has strengthened significantly on the primary market, with the latest government auction attracting bids far above the amount targeted for borrowing.
Data released by the Bank of Ghana shows that investors submitted bids worth GH¢10.03 billion across the 91-day, 182-day and 364-day Treasury bill instruments, against the government’s target of GH¢5.67 billion.
The strong demand represents a 77 per cent oversubscription, signalling increased investor interest in short-term government securities.
The government accepted GH¢7.38 billion of the total bids received, exceeding its original target by GH¢1.71 billion as it took advantage of the strong market appetite.
The 364-day Treasury bill attracted the highest investor interest, receiving bids worth GH¢5.65 billion. Out of this amount, the government accepted GH¢4.53 billion, making it the largest contributor to the funds raised.
The 91-day Treasury bill, which remains a key benchmark instrument, attracted bids totalling GH¢2.98 billion, with the government accepting GH¢1.80 billion.
For the 182-day Treasury bill, investors submitted bids worth GH¢1.40 billion, while the Treasury accepted GH¢1.06 billion.
Yields across the different Treasury bill categories recorded mixed movements. The yield on the 91-day bill declined slightly to 5.86 per cent from 5.87 per cent in the previous auction, while the 182-day bill remained unchanged at 7.79 per cent.
The 364-day Treasury bill, however, recorded an increase, rising to 12.99 per cent from 12.92 per cent, reflecting investors’ demand for higher returns on longer-term government securities.