Investor appetite for Treasury bills strengthened sharply on the primary market last week, with the latest auction attracting bids nearly double the government’s fundraising target.
According to results released by the Bank of Ghana, investors submitted a total of GH¢10.03 billion in bids across the 91-day, 182-day and 364-day Treasury bill tenors, against a target of GH¢5.67 billion. This represents an oversubscription of 77%, underscoring strong demand for short-term government securities.
The Treasury accepted GH¢7.38 billion of the bids received, exceeding its financing target by GH¢1.71 billion as it took up a larger share of investor demand.
The 364-day Treasury bill continued to dominate investor interest, attracting GH¢5.65 billion in bids. Of that amount, the government accepted GH¢4.53 billion, accounting for the largest share of the funds raised.
The benchmark 91-day bill recorded bids worth GH¢2.98 billion, with GH¢1.80 billion accepted. Meanwhile, investors tendered GH¢1.40 billion for the 182-day bill, of which the Treasury accepted GH¢1.06 billion.
Yields were mixed across the curve. The yield on the 91-day bill eased marginally by 1 basis point to 5.86% from 5.87% in the previous auction, while the 182-day bill remained unchanged 7.79%. The 364-day bill, however, increased 7 points to 12.99% from 12.92%, reflecting sustained investor demand for higher returns on longer-dated government securities.
The latest auction marks a sharp improvement from the previous sale, when investors submitted GH¢4.16 billion in bids. The surge in subscriptions points to renewed investor confidence in government securities despite elevated interest rates.
Looking ahead, the government plans to raise GH¢7.36 billion through Tender 2016 to support its short-term financing needs.
