Treasury bills auction records 4% oversubscription in final week of October

Ghana’s Treasury bill auction for the final week of October recorded a 4 per cent oversubscription, with total bids reaching GH¢2.55 billion against a target of GH¢2.45 billion.

The latest data from the Bank of Ghana (BoG), however, shows that the total value of bids tendered declined by approximately 40 per cent compared with the previous week, indicating a moderation in investor demand.

The Treasury, in line with the government’s selective acceptance strategy, accepted GH¢1.92 billion of the bids, representing approximately 78 per cent of the auction target.

The 91-day Treasury bill attracted the highest investor interest, receiving bids worth GH¢1.51 billion, of which GH¢1.23 billion was accepted.

For the 182-day bill, investors tendered GH¢423.74 million, with the Treasury accepting GH¢395.74 million.

Meanwhile, the 364-day bill attracted GH¢613.83 million in bids, of which GH¢292.12 million was accepted.

Total bids submitted across the primary market auctions in October amounted to GH¢19.97 billion, exceeding the overall target of GH¢16.27 billion.

However, the Treasury accepted GH¢14.97 billion over the period, rejecting approximately GH¢5 billion in investor offers and falling about GH¢1.3 billion short of its cumulative target.

The government’s selective acceptance approach has also kept Treasury bill yields within the 5 per cent to 10 per cent range.

The yield on the 91-day bill edged down by one basis point to 4.60 per cent, while those on the 182-day and 364-day bills declined by four and seven basis points to 6.26 per cent and 9.60 per cent, respectively.

For the upcoming auction, the government plans to raise GH¢3.54 billion through the issuance of 91-day, 182-day and 364-day Treasury bills.

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