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

Investor demand for Treasury bills has surged, with the recent primary market auction surpassing the government's target by GH¢904.64 million. The auction gathered total bids of GH¢3.66 billion across 91-day, 182-day, and 364-day Treasury bills, representing a 32.9% oversubscription compared to the previous auction. The government accepted GH¢2.90 billion of the bids, reflecting 79.3% of the total investor demand.

The 91-day bill received the most bids, with GH¢2.08 billion, of which GH¢1.88 billion was accepted, followed by the 182-day instrument with GH¢702.95 million in bids and GH¢520.57 million accepted. The 364-day bill attracted GH¢876.72 million in bids, of which GH¢497.74 million was taken by the government.

The auction also revealed a decline in Treasury bill yields across all three maturities. The 91-day yield dropped by two basis points to 4.67%, the 182-day yield decreased by 11 basis points to 6.37%, while the 364-day yield experienced the largest decline, falling by 15 basis points to 9.83%. Analysts have credited the stronger demand to the government's more lenient borrowing target, coupled with a persistent appetite for short-term government securities.

For the upcoming auction, the government plans to target GH¢2.24 billion through the issuance of 91-day, 182-day, and 364-day Treasury bills.