The Bank of Ghana’s latest Treasury bill auction saw the government exceed its target once again, raising GH¢458 million above the GH¢5.67 billion target.
Data released by the Central Bank showed that total bids submitted for the 91-day, 182-day, and 364-day Treasury bills reached GH¢10.76 billion, out of which GH¢6.14 billion was accepted.
The outcome represents an oversubscription rate of 89.53 percent, extending the run of excess demand to fifteen weeks and highlighting sustained investor appetite for short-term sovereign securities.
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Demand was strong across all tenors, with investors submitting substantial bids for each of the three instruments. The 91-day Treasury bill recorded the highest interest from investors, attracting GH¢5.21 billion in bids, of which GH¢3.47 billion was accepted.
For the 182-day bill, investors tendered GH¢1.96 billion, with the central bank accepting GH¢946.44 million. The 364-day bill also saw significant demand, with bids reaching GH¢3.60 billion, while GH¢1.72 billion was accepted.
The strong demand for the instruments came even as yields declined across all tenors, reflecting easing pricing conditions and strong liquidity in the market. The development also underscores continued investor preference for government securities, particularly short-term instruments at the front end of the yield curve.
The 91-day Treasury bill rate fell by 50 basis points to 4.82 percent, down from 5.32 percent recorded in the previous auction. The 182-day yield declined by 67 basis points to 6.30 percent from 6.97 percent, while the 364-day bill rate dropped by 42 basis points to 9.34 percent.
Market analysts say the persistent oversubscription alongside declining yields signals improving liquidity conditions and sustained investor confidence in government securities, with demand increasingly concentrated in shorter-dated instruments.
Looking ahead, the government has set a target of GH¢8.13 billion for the next Treasury bill auction.
CNR