Investor appetite for Ghana Treasury bills continued to strengthen as the government recorded a significant oversubscription at the latest auction, exceeding its target by 139%.
According to the latest Treasury bill auction results from the Bank of Ghana, investors showed strong interest across the various short-term government securities, with the 364-day Treasury bill attracting the highest level of demand due to its relatively attractive yield.
The government received total bids worth approximately GH¢12.3 billion but accepted GH¢6.5 billion, reflecting strong investor participation in the domestic fixed-income market.
The 364-day Treasury bill remained the most subscribed instrument, attracting bids worth GH¢7.4 billion, which accounted for about 60.7% of total bids submitted during the auction. The government accepted approximately GH¢2.7 billion of these bids.
The 182-day Treasury bill also recorded notable investor demand, receiving bids valued at approximately GH¢1.2 billion. The government accepted slightly more than GH¢935 million.
Meanwhile, investors submitted bids worth about GH¢3.5 billion for the 91-day Treasury bill, with the government accepting slightly above GH¢2.8 billion.
Despite the strong demand for government securities, Treasury bill interest rates continued to show mixed movements along the yield curve.
The yield on the 91-day Treasury bill increased by 13 basis points to 4.94%, while the yield on the 182-day bill declined from 7.08% in the previous week to 6.87%.
The yield on the 364-day Treasury bill also fell by 82 basis points to 10.77%, although it remained the highest-yielding instrument among the three Treasury bills.
The latest auction highlights continued investor interest in Ghana government securities, as investors assess Treasury bills as an avenue for short-term investment and income generation.
The strong subscription levels also underline the importance of Treasury bills within Ghana’s domestic financial market, particularly for investors seeking relatively short-term fixed-income investment opportunities.
Source: newsthemegh.com