The Government of Ghana has recorded a marginal oversubscription in its latest Treasury bills auction, attracting GH¢8.1 billion in bids against a target of GH¢7.9 billion.
According to the latest auction results released by the Bank of Ghana (BoG), the government received bids equivalent to a 2.8% oversubscription of its short-term securities.
Out of the total bids submitted, the government accepted approximately GH¢7.2 billion, as investors continued to show strong demand for Ghana Treasury bills.
91-Day Treasury Bill Records Highest Demand
The 91-day Treasury bill attracted the highest level of investor interest during the auction.
Investors tendered approximately GH¢4.56 billion in bids for the 91-day bill, accounting for about 55% of the total bids received.
The government accepted GH¢4.52 billion of the bids submitted for the short-term security.
For the 182-day Treasury bill, investors submitted bids worth approximately GH¢2.07 billion, with the government accepting about GH¢1.81 billion.
Meanwhile, the 364-day Treasury bill attracted GH¢1.56 billion in bids. The government accepted approximately GH¢867.93 million of the amount tendered.
Ghana Treasury Bill Interest Rates Continue to Decline
Interest rates across the Treasury bill yield curve continued their downward trend during the latest auction.
The yield on the 91-day Treasury bill declined by 11 basis points to 4.69%.
Similarly, the yield on the 182-day Treasury bill dropped to 6.51%, compared with 6.67% recorded in the previous week.
The yield on the 364-day Treasury bill also decreased by one basis point to 10.10%.
The continued decline in Treasury bill yields indicates changing conditions in Ghana’s short-term debt market, as investors adjust their expectations around interest rates and government borrowing.
Government Borrowing and Treasury Market
The latest Treasury bills auction highlights continued investor demand for Ghana government securities, even as yields move lower.
Treasury bills remain an important source of short-term government financing and provide investors with an avenue to invest in relatively short-duration government-backed securities.
The performance of the latest auction will therefore remain important to investors, financial institutions and businesses monitoring Ghana Treasury bill rates, government borrowing and interest rate trends.
Source: newsthemegh.com