Investor demand for Ghana’s Treasury bills remained resilient at the latest primary market auction, with total bids exceeding the government’s target by 2.83%.
Data from the Bank of Ghana show that investors tendered a total of GH¢8.20 billion, compared with the government’s target of GH¢7.97 billion.
The bids exceeded the government’s target by approximately GH¢225.73 million, reflecting continued investor appetite for short-term government securities.
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The government, however, accepted GH¢7.21 billion of the bids submitted, representing about 87.9% of total investor bids.
Despite the strong subscription level, total investor bids declined by approximately 18% week-on-week, suggesting some moderation in demand compared with the previous auction.
The 91-day Treasury bill continued to attract the largest share of investor interest, receiving GH¢4.56 billion in bids. The government accepted GH¢4.52 billion of the amount tendered.
The 182-day Treasury bill attracted GH¢2.07 billion in bids, of which GH¢1.82 billion was accepted.
Meanwhile, the 364-day Treasury bill received GH¢1.56 billion in bids, with the government accepting GH¢867.93 million.
The continued liquidity in the market pushed Treasury bill yields further down across the yield curve.
The yield on the 91-day Treasury bill declined by about 11 basis points, falling to 4.69% from 4.80% the previous week.
Similarly, the yield on the 182-day bill dropped by about 17 basis points to 6.51%, from 6.68%.
The 364-day Treasury bill recorded the smallest decline, with its yield falling by approximately 1 basis point to 10.10%, compared with 10.11% in the previous auction.
Analysts believe yields could continue to decline as liquidity conditions evolve, although the pace of reductions may moderate.
They argue that as liquidity is increasingly distributed towards other relatively tighter investment alternatives in the market, Treasury bill yields will gradually approach an equilibrium level, where further declines are likely to become more muted.
For the next auction, the government is targeting GH¢4.12 billion through the issuance of 91-day, 182-day and 364-day Treasury bills.
The latest auction results indicate that investor appetite for government securities remains relatively strong, even as yields continue to trend downward.