Investors channel most funds into 364-day government securities

Investors overwhelmingly favored the 364-day Treasury Bill during Ghana's recent government securities auction, with bids reaching GH¢9.94 billion, accounting for nearly 70% of the total GH¢14.27 billion in bids. The Bank of Ghana (BoG) auction results revealed that the government accepted GH¢2.69 billion of these bids for the 364-day bill, the highest amount among the three securities available.

This was followed by the 91-day Treasury Bill, which garnered GH¢3.12 billion in bids, of which GH¢2.40 billion was accepted, and the 182-day bill, which received GH¢1.20 billion in bids, with GH¢766.21 million accepted. The auction exceeded the government's target of GH¢5.43 billion in total bids. The 364-day bill's weighted average interest rate stood at 11.59%, compared to 7.08% for the 182-day bill and 5.0795% for the 91-day bill.

The auction results indicate that investors allocated the largest portion of their bids to the longer-dated instrument, offering the highest weighted average interest rate among the three tenors. The BoG has set a target of GH¢5.15 billion for the upcoming Treasury Bills auction.