Rising demand for T-bills to be sustained, yields to compress further
Last week, investor demand for T-bills strengthened further, with total bids rising 26.50% week-on-week to GH¢14.27 billion, against a GH¢5.43 billion target.
Treasury bills demand is projected to remain robust in the near future due to further compression of yields, according to expert analysis. This follows a successful auction in which the government surpassed its target by 180% last week. The yield curve has seen a decline in yields, indicating growing investor interest in short-term securities.
Analysts attribute the strong demand to improved liquidity resulting from the Domestic Debt Exchange Programme (DDEP) coupon payment. Investors are increasingly moving towards the 364-day bill to secure attractive yields before any further yield compression occurs. Databank Research predicts that the supportive liquidity environment will maintain demand and maintain downward pressure on T-bill yields.
Last week, investor demand for T-bills surged by 26.50% week-on-week to GH¢14.27 billion, surpassing the GH¢5.43 billion target by 162.89% oversubscription. The Treasury accepted GH¢5.85 billion, exceeding its target by 7.86%. This heightened demand pushed yields down further. The 91-day, 182-day, and 364-day rates decreased by 39, 19, and 91 basis points to 5.08%, 7.08%, and 11.59%, respectively.
The Treasury plans to raise GH¢5.15 billion through the issuance of 91-day, 182-day, and 364-day bills to cover maturing bills of GH¢5.08 billion.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
