The government raised GHS 8.29 billion at the most recent auction, surpassing its aim of GHS 7.43 billion for Treasury bills.
Strong investor demand for short-term government securities is demonstrated by the auction.
The total amount of bids submitted for the 91-, 182-, and 364-day Treasury notes was GHS 8.44 billion, according to data from the Bank of Ghana. GHS 8.29 billion of this was accepted by the government, representing a 98.31% acceptance percentage.
The sum raised was GHS 868.98 million more than the aim, or 11.7% more than the government had planned to borrow.
The 91-day bill accounted for the majority of approved bids, indicating that investor demand was still strongly biased toward shorter-dated instruments.
The entire GHS 6.04 billion tendered for the 91-day bill was accepted by the government, accounting for 72.8% of the total amount raised throughout the course of the three maturities.
Investors offered bids totalling GHS 1.10 billion for the 182-day bill, of which GHS 1.04 billion was approved. In the meantime, bids for the 364-day bill totalled GHS 1.30 billion, of which GHS 1.22 billion were accepted.
The findings show that investors continue to favour short-term government securities due to the money market’s comparatively predictable returns, lower duration risk, and desire for liquidity.
Yields on Treasury bills stayed largely stable.
The 182-day bill closed at 7.08%, while the 91-day bill cleared at a weighted average interest rate of 5.04%.
The 364-day bill maintained a substantial premium over the shorter-tenor instruments with a weighted average yield of 10.98%.
The range of acceptable rates for the 91-day bill was 4.86% to 5.58%, and the range for the 182-day bill was 7.00% to 7.15%. Accepted rates for the 364-day bill varied from 10.50% to 11.25%.
The government’s short-term borrowing rose dramatically in comparison to the June 5, 2026, auction.
GHS 5.83 billion of the GHS 6.09 billion total bids were accepted at that auction. Thus, the most recent sum accepted, GHS 8.29 billion, is 42.2% more than the sale from the previous week.
Despite investors’ continued comfort with shorter maturities, the government appears to be enjoying strong demand in the domestic debt market, as seen by the substantial increase in accepted bids.
At a time when domestic income mobilisation, expenditure control, and debt servicing requirements continue to be top fiscal objectives, the successful auction result gives the government more short-term financial help.
Investors, especially banks, pension funds, fund managers, corporations, and individual investors looking for short-term placements, continue to find Treasury notes to be an appealing instrument for cash management and comparatively low-risk cedi-denominated returns.
With investors clearly favouring shorter tenors over longer-dated government securities, the most recent results further support the 91-day bill’s supremacy in current market demand.
For the upcoming auction, Tender 2012, which will cover the 91-day, 182-day, and 364-day bills, the government has set a lower target of GHS 5.27 billion.
Source: newsthemegh.com