Demand for government securities remained strong last week, with the latest data from the Bank of Ghana showing that the Treasury bill auction was oversubscribed by 87.2%.
The latest auction attracted total bids of GH¢11.64 billion, against a target of GH¢6.2 billion.
This means investor bids exceeded the government’s target by more than GH¢5.4 billion, pointing to sustained appetite for government securities.
The government ultimately accepted GH¢9.42 billion of the bids submitted across the 91-day, 182-day and 364-day Treasury bills.
The 364-day Treasury bill attracted the largest share of investor interest, receiving bids worth GH¢6.02 billion, of which the government accepted GH¢5.86 billion.
The 91-day bill attracted GH¢3.70 billion in bids, with GH¢2.36 billion accepted.
For the 182-day bill, investors tendered GH¢1.91 billion, while the government accepted GH¢1.19 billion.
The auction results show that demand was strongest for the longer-dated 364-day instrument, which accounted for more than half of the total bids submitted.
Yields were mixed across the Treasury bill curve. The yield on the 91-day bill declined by 14 basis points to 5.62%, from 5.76% at the previous auction.
Similarly, the yield on the 182-day bill fell by 12 basis points to 7.52%, from 7.64%. In contrast, the yield on the 364-day bill remained unchanged at 12.98%.
The latest auction therefore points to continued strong appetite for government Treasury bills, with investor bids comfortably exceeding the amount the government targeted to raise.
