The Government of Ghana has recorded strong investor demand at the latest Treasury Bills (T-Bills) auction, receiving bids significantly above its target as interest rates continued to decline across the yield curve.
According to the latest Bank of Ghana Treasury Bills auction results, investors submitted bids worth approximately GH¢11.2 billion, representing an 88% oversubscription compared with the government’s target.
Despite the strong demand, the government accepted approximately GH¢4.88 billion of the bids.
91-Day T-Bill Becomes Most Popular
The 91-day Treasury Bill emerged as the most heavily subscribed short-term government security, overtaking the 364-day bill.
Investors tendered approximately GH¢5.07 billion for the 91-day bill, representing about 44.9% of total bids. The government accepted approximately GH¢4.07 billion.
The 182-day Treasury Bill attracted bids worth about GH¢1.28 billion, out of which approximately GH¢526.44 million was accepted.
Meanwhile, the 364-day Treasury Bill received bids totaling approximately GH¢4.93 billion. However, the government accepted only about GH¢289.70 million of the bids.
Treasury Bill Interest Rates Continue to Decline
The latest auction also recorded a significant drop in T-Bill interest rates, with yields falling across all major maturities.
The yield on the 91-day Treasury Bill declined by 16 basis points to 5.46%.
Similarly, the yield on the 182-day bill dropped from 7.57% to 7.27%.
The biggest decline was recorded on the 364-day Treasury Bill, whose yield fell by 48 basis points to 12.50%.
The decline in Treasury Bill yields comes amid increased investor participation in Ghana’s domestic debt market and continued developments in the country’s monetary and financial markets.
T-Bills Auction Results
| Treasury Security | Bids Tendered | Bids Accepted |
|---|---|---|
| 91-Day Bill | GH¢5.066 billion | GH¢4.065 billion |
| 182-Day Bill | GH¢1.281 billion | GH¢526.44 million |
| 364-Day Bill | GH¢4.931 billion | GH¢289.70 million |
The latest results highlight continued investor appetite for Ghana Treasury Bills, while the falling yields could have implications for short-term investment returns, government borrowing costs and the broader Ghanaian financial market.
Source: newsthemegh.com