T-bills auction oversubscribed by 14%
The government has achieved a 14.1 per cent oversubscription in its latest treasury bills auction, reversing last week’s shortfall and signalling strong investor confidence despite mixed movements on the yield curve.
According to the Bank of Ghana’s auction results, the government received total bids worth GHS3.44 billion, accepting GHS3.01 billion to meet its short-term financing needs.
The 91-day bill remained the most sought-after instrument, accounting for over 74 per cent of total bids. Investors tendered approximately GHS2.58 billion, of which GHS2.57 billion was accepted, reflecting consistent appetite for the shortest tenor.
For the 182-day bill, bids climbed to GHS613.8 million, higher than the previous week, with GHS608.8 million accepted.
The 364-day bill also attracted GHS250.4 million in bids, with GHS247.3 million taken up by the government.
Despite the strong demand, yields showed a mixed pattern. The 91-day bill rate edged up by 3 basis points to 10.45 per cent, signalling slightly higher returns for investors seeking ultra-short-term securities.
However, the 182-day bill yield eased to 12.36 per cent from 12.41 per cent, and the 364-day bill dropped by 9 basis points to 12.88 per cent, reflecting downward pressure on medium-term borrowing costs.
Market analysts view the oversubscription as a sign of renewed investor confidence in Ghana’s short-term debt market, bolstered by improved liquidity conditions and continued preference for risk-free government instruments amid global market uncertainties.
The successful auction provides government with critical short-term funding to manage cash flow and refinance maturing obligations, while helping to stabilise domestic debt operations. It also underscores the central bank’s efforts to maintain an attractive but sustainable yield environment to balance investor demand with the country’s cost of borrowing.
The positive outcome comes just a week after the government missed its T-bills target, offering reassurance to market participants and reinforcing the role of short-term securities as a key component of Ghana’s domestic financing strategy.
