Govt Exceeds T Bill Target by 88%
By Praisebell Rosemond Larbi
The government has exceeded its Treasury bill target by 88 percent, reflecting a significant increase in investor appetite for short-term government securities.
According to the latest auction results released by the Bank of Ghana, investors submitted bids totaling approximately GH¢11.2 billion. However, the government accepted about GH¢4.88 billion of the total amount tendered.
The strong investor participation was particularly evident in the 91-day Treasury bill, which emerged as the most heavily patronised instrument during the auction. It overtook the 364-day bill, which had previously attracted the highest level of investor interest among the short-term securities.
The 91-day bill received bids of about GH¢5 billion, representing 44.9 percent of the total bids submitted. Of this amount, the government accepted a little over GH¢4 billion, making it the dominant instrument in terms of both demand and uptake.
In contrast, the 364-day Treasury bill attracted bids worth approximately GH¢4.9 billion. Despite the substantial demand for the longer-term instrument, the government accepted only GH¢289.70 million of the bids submitted.
The 182-day bill also recorded notable investor interest, receiving bids valued at about GH¢1.28 billion. The government accepted slightly more than GH¢526 million of the total bids.
The auction also saw a broad decline in interest rates across the yield curve, indicating that investors were willing to accept lower returns on government securities amid the heightened demand.
The yield on the 91-day Treasury bill declined by 16 basis points to 5.46 percent. Similarly, the yield on the 182-day bill fell to 7.27 percent from 7.57 percent in the previous week.
The sharpest decline was recorded on the 364-day bill, whose yield dropped by 48 basis points to 12.50 percent.
The combination of strong demand and falling yields points to improved investor confidence in short-term government securities. The government’s ability to attract significantly more bids than its target also provides greater flexibility in managing its short-term financing needs.
The latest auction therefore signals a notable shift in investor appetite, with demand concentrated heavily on the 91-day bill while yields continued their downward trend across all three maturity periods.
