Demand for Treasury bills remained strong at the latest primary market auction, with investor bids significantly exceeding the government’s target.
Data from the Bank of Ghana show that investors tendered a total of GH¢11.28 billion across the 91-day, 182-day and 364-day Treasury bills, against a target of GH¢5.99 billion.
This represents an 88.2% oversubscription, with bids exceeding the government’s target by about GH¢5.29 billion.
Despite the strong demand, the government accepted a total of GH¢4.88 billion of the bids submitted. Demand was strongest for the 91-day bill, where investors tendered GH¢5.07 billion, of which the government accepted GH¢4.07 billion, representing about 80% of bids.
For the 182-day bill, investors submitted GH¢1.28 billion in bids, of which GH¢526.44 million was accepted. The 364-day bill attracted GH¢4.93 billion in bids, but the government accepted just GH¢289.70 million.
The modest uptake by the sovereign, despite strong investor demand, helped drive yields lower across the T-bill curve. The 91-day bill yield declined by 16 basis points to 5.46% from 5.62% at the previous auction. The 182-day yield fell by 25 basis points to 7.27%, while the 364-day yield dropped by 48 basis points to 12.50%, from 12.98%.
The latest auction points to controlled borrowing by the sovereign despite strong investor appetite, reinforcing the downward pressure on T-bill yields.
For the next auction, the government is seeking to raise GH¢5.43 billion through the issuance of the 91-day, 182-day and 364-day Treasury bills.
