T-bills auction: Government records 41% oversubscription; but yield on 91-day bill increases

The government's recent auction of treasury bills exceeded its target by a significant margin - by 41% - amassing GH¢5.01 billion in bids, as reported by the Bank of Ghana. This follows the government's borrowing of approximately GH¢14 billion through short-term instruments in October 2026.

The government managed to secure GH¢4.10 billion in bids, which surpassed the targeted amount. About GH¢3.0 billion of these bids were for the 91-day bill, accounting for 59% of the total bids. The remaining GH¢2.9 billion of the bids were for the 182-day bill. However, only GH¢934.50 million of the bids for the 182-day bill were accepted, while above GH¢243.15 million of the bids for the 364-day bill were accepted.

Interestingly, the yield on the 91-day bill rose by 2.0 basis points to 4.56% due to the increased demand. Conversely, the yield on the 182-day bill fell to 6.20% from the previous week's 6.26%. Additionally, the yield on the 364-day bill decreased by 12.0 basis points to 9.48%.