The Government of Ghana has exceeded its treasury bills target by 73%, raising strong investor demand as the yield on the 364-day government security climbed to nearly 13%.
According to the latest Bank of Ghana treasury bill auction results, investors continued to show a strong preference for the 364-day bill, largely because of its relatively attractive interest rate compared with shorter-term government securities.
The government received bids worth approximately GH¢10.7 billion but accepted GH¢9.4 billion, reflecting strong demand for Ghana government securities.
364-Day Treasury Bill Attracts Highest Investor Demand
The 364-day treasury bill was once again the most subscribed instrument during the auction. It attracted slightly more than GH¢6.0 billion in bids, accounting for about 55.8% of total bids submitted.
The government accepted approximately GH¢5.8 billion of the bids for the one-year bill.
Meanwhile, the 182-day treasury bill received bids valued at about GH¢1.9 billion, with slightly more than GH¢1.1 billion accepted.
The 91-day treasury bill attracted approximately GH¢6.0 billion in bids, of which more than GH¢5.8 billion was accepted.
Treasury Bill Interest Rates Record Mixed Movements
Interest rates across Ghana’s treasury bill yield curve recorded mixed movements during the latest auction.
The yield on the 91-day treasury bill declined by 14 basis points to 5.62%, while the yield on the 182-day bill fell to 7.52%, compared with 7.64% in the previous week.
In contrast, the yield on the 364-day treasury bill increased by 2 basis points to 12.98%, bringing the one-year government security close to the 13% mark.
The continued strong demand for treasury bills highlights investor interest in Ghana government securities and fixed-income investments, particularly longer-term instruments offering relatively higher returns.
The latest auction also provides an indication of developments in Ghana’s money market, as investors assess treasury bill yields, interest rates and government borrowing needs.
Source: newsthemegh.com