The Treasury rebounded last week, with the government’s latest Treasury bill auction recording its first oversubscription after four weeks of undersubscription.
Latest data from the Bank of Ghana showed that investors tendered a total of GH¢4.38 billion across the 91-, 182-, and 364-day bills. Of this amount, the Treasury accepted GH¢4.36 billion, exceeding a target of GH¢3.78 billion by 15.34 per cent.
A breakdown of the bids indicates that GH¢3.62 billion out of GH¢3.63 billion was accepted on the 91-day bill. For the 182-day bill, GH¢566 million was taken from the GH¢576 million submitted, while the 364-day bill saw GH¢182 million accepted out of the GH¢187 million tendered.
Analysts attribute the oversubscription to a relatively modest issuance target, combined with increased demand from investors, which provided the Treasury with room to accept nearly all bids submitted.
Meanwhile, yields at the short end of the curve edged up marginally, averaging between 10 and 12 per cent.
The 91-day yield rose 10 basis points to 10.42 per cent from 10.32 per cent, while the 182-day yield increased 4 basis points to 12.41 per cent. The 364-day, however, eased by 2 basis points to 12.97 per cent.
Looking ahead, the government is targeting GH¢8.2 billion at the next auction.
