Treasury bills oversubscribed by 15.8%
By Praisebell Rosemond Larbi
The Government of Ghana has recorded a 15.8 per cent oversubscription in its latest treasury bills auction, breaking a four-week streak of missed targets and reflecting renewed investor confidence in the short-term debt market.
According to results published by the Bank of Ghana (BoG), the government received bids totalling GHS4.38 billion and accepted nearly all, amounting to GHS4.36 billion.
The auction, which closed on Friday, marked a significant turnaround following recent underwhelming auctions where targets were missed due to weak investor participation.
A breakdown of the results showed strong appetite for the 91-day bill, which accounted for more than 82 per cent of the total bids. Investors tendered GHS3.62 billion, out of which the government accepted GHS3.61 billion.
For the 182-day bill, bids amounted to GHS576.7 million, with GHS566.7 million accepted. The 364-day bill saw relatively lower participation, with GHS187.2 million tendered and about GHS182 million taken up.
The auction also saw movements in yields, reflecting market demand and liquidity dynamics. The yield on the benchmark 91-day bill inched up by a basis point to 10.42 per cent.
The 182-day bill rose to 12.41 per cent, compared with 12.37 per cent the previous week.
In contrast, the 364-day bill fell by 2.0 basis points to 12.97 per cent, suggesting slightly improved investor interest in longer-dated maturities.
Analysts say the oversubscription was partly driven by the higher yields on the shorter end of the curve, which attracted investors seeking safety and quick returns amid ongoing economic uncertainties.
The government, facing persistent financing pressures, is also expected to continue relying heavily on treasury issuances to bridge fiscal gaps.
Market watchers will be closely monitoring upcoming auctions to determine whether this rebound in demand will be sustained, especially as yields remain relatively low compared to historic highs during the domestic debt restructuring exercise.
Treasury bills remain a critical financing tool for the government, serving as a major source of liquidity while also acting as a barometer of investor confidence in the broader economy.
