Treasury bill demand rebounds as investors submit GH¢3.66bn in bids

Investor interest in Treasury bills surged, with bids surpassing the government's target by a significant margin. The latest primary market auction for 91-day, 182-day, and 364-day Treasury bills attracted total bids of GH¢3.66 billion, exceeding the set target of GH¢2.75 billion by GH¢904.64 million. This 32.9% oversubscription is a stark contrast to the previous auction, which saw an undersubscription of around 4%. The government accepted GH¢2.90 billion, representing approximately 79.3% of investor demand.

The 91-day bill emerged as the most popular, receiving GH¢2.08 billion in bids, with GH¢1.88 billion being accepted by the government. The 182-day instrument garnered GH¢702.95 million in bids, resulting in an acceptance of GH¢520.57 million. Meanwhile, the 364-day bill saw GH¢876.72 million in bids, of which GH¢497.74 million were accepted by the government.

Furthermore, the auction revealed a trend of declining Treasury bill yields across all three maturities. The 91-day yield decreased by two basis points to 4.67%, while the 182-day yield dropped by 11 basis points to 6.37%. Notably, the 364-day yield experienced the most substantial decline, falling by 15 basis points to 9.83%.

Analysts have attributed the increased demand to the government's comparatively softer borrowing target, coupled with sustained investor interest in short-term government securities. For the subsequent auction, the government is aiming to issue GH¢2.24 billion through the sale of 91-day, 182-day, and 364-day Treasury bills.