Govt Exceeds T-Bill Target by 7.4%

The Government of Ghana slightly exceeded its treasury bill target at the latest auction, raising more funds than anticipated despite a slowdown in investor demand compared with the strong oversubscriptions recorded in recent weeks.

Figures released by the Bank of Ghana show that the government received bids worth GH¢8.7 billion, representing 7.4 per cent above its target for the auction. However, authorities accepted GH¢7.9 billion of the total bids submitted.

The marginal oversubscription suggests a moderation in investor appetite for short‑term government securities, largely attributed to declining yields offered on the instruments.

The 91‑day treasury bill continued to dominate investor demand, accounting for the bulk of subscriptions. Total bids for the instrument reached GH¢6.15 billion, with the government accepting approximately GH¢5.8 billion.

Demand for the 182‑day bill was comparatively lower. Investors submitted bids amounting to GH¢2.05 billion, out of which GH¢946 million was accepted.

The 364‑day bill attracted bids of about GH¢529.46 million, with the government taking up GH¢480.46 million.

Meanwhile, interest rates at the shorter end of the market recorded slight declines. The yield on the 91‑day bill dropped by 11 basis points to 4.71 per cent, reflecting the continued downward trend in short‑term borrowing costs.

Similarly, the yield on the 182‑day bill edged down marginally to 6.28 per cent, from 6.30 per cent in the previous auction.

In contrast, the yield on the 364‑day bill moved upward slightly, rising by 6 basis points to 9.40 per cent, indicating relatively stronger pricing pressure at the longer end of the short‑term market.

The latest auction results highlight a shifting dynamic in the treasury market, where declining yields appear to be tempering investor enthusiasm even as government borrowing through short‑term instruments remains strong.