Princess Avenyoh
Ghana’s Treasury has recorded an oversubscription in its latest primary treasury bill auction for the first time in two months.
Investor demand surged by 97.82 percent above the government’s target, signaling renewed interest in short-term government securities.
Data from the Bank of Ghana shows that the auction attracted total bids of GHS 20.98 billion. Out of this amount, the Treasury accepted GHS 10.64 billion.
This figure exceeded both its target of GHS 5.44 billion and the upcoming maturity obligation of GHS 5.24 billion.
The performance marks a major rebound following several weeks of weak results in the T-bill market.
Analysts suggest the sharp uptick in investor appetite is partly due to a significant drop in returns on the Bank of Ghana’s policy bills.
These BoG Bills had previously offered yields of up to 27 percent but have since seen a sharp decline.
The auction breakdown reveals that GHS 5.65 billion was accepted from GHS 13.77 billion in bids for the 91-day bill.
For the 182-day bill, GHS 2.99 billion was taken from GHS 4.22 billion in bids.
The 364-day bill also saw GHS 2.00 billion accepted out of GHS 2.98 billion submitted.
Yields on short-term government securities dropped across all tenors.
The 91-day bill saw a decline of 93 basis points to 13.72 percent. The 182-day yield fell by 41 basis points to 14.61 percent from 15.02 percent.
The 364-day bill decreased by 68 basis points to 14.73 percent. With confidence returning to the market, the government plans to raise GHS 7.70 billion at the next auction.