The treasury bills market has posted a strong rebound, with investors submitting bids far above the government’s target in a clear sign of renewed confidence in the country’s short-term securities.
The latest auction conducted by the Bank of Ghana saw Treasury Bills attract total bids of GH¢7.83 billion, surpassing the government’s target of GH¢4.35 billion by GH¢1.74 billion. The impressive performance marks the first major oversubscription after two consecutive months of undersubscription in the domestic debt market.
The strong appetite for treasury bills reflects growing investor preference for safer and more liquid fixed-income instruments as uncertainty in the equity market encourages a shift toward low-risk investments.
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Out of the total bids received, the government accepted GH¢6.09 billion to support short-term financing needs and refinance maturing obligations.
The 91-day Treasury bill dominated the auction, attracting GH¢5.72 billion in bids, with GH¢4.37 billion accepted.
The 182-day bill recorded GH¢650 million in bids, of which GH¢570 million was accepted.
The 364-day bill also drew significant interest, receiving GH¢1.46 billion in bids, with GH¢1.14 billion accepted.
The robust demand contributed to a decline in key yields.
The 91-day bill yield fell by 4 basis points to 4.88%.
The 182-day bill yield edged up slightly to 7.03% from 6.97%. The 364-day bill yield declined by 6 basis points to 10.13%.
Market analysts say the oversubscription underscores improving confidence in Ghana’s macroeconomic outlook and growing investor optimism about fiscal stability.
Looking ahead, the government plans to raise GH¢4.30 billion in the next auction to meet upcoming maturities and fund short-term budgetary requirements.
The strong response to the latest auction is expected to provide additional momentum for government financing efforts while reinforcing confidence in the domestic money market.