Demand for Treasury bills continues to exceed government targets, with the latest data from the Bank of Ghana pointing to sustained and strong investor appetite.
At the most recent auction, investors submitted bids worth GH¢22.67 billion against an issuance target of GH¢6.42 billion, resulting in a 253 percent oversubscription. This marks a marginal increase from the 246 percent oversubscription recorded in the previous week.
Out of the total bids received, the government accepted GH¢8.99 billion across the 91-day, 182-day, and 364-day Treasury bill instruments. Specifically, GH¢3.41 billion was accepted for the 91-day bill from bids totalling GH¢7.64 billion. For the 182-day bill, GH¢2.09 billion was taken from GH¢7.27 billion tendered, while the 364-day bill saw GH¢3.49 billion accepted out of GH¢7.76 billion in bids.
The strong demand and liquidity build-up in the market led to a sharp decline in yields across all tenors. The 91-day bill rate fell by 136 basis points to 8.60 percent, down from 9.96 percent. The 182-day yield declined by 114 basis points to 10.67 percent from 11.81 percent, while the 364-day bill eased by 100 basis points to 11.06 percent from 12.06 percent.
Market analysts attribute the yield compression not only to ample liquidity but also to aggressive and competitive bidding, as investors lower their rates following earlier bid rejections to improve their chances of securing allocations.
Looking ahead, the government is targeting GH¢9.32 billion in the next Treasury bill auction, underscoring its continued reliance on short-term domestic borrowing to meet financing needs.
