Treasury bill demand nearly doubles to GH¢5bn as yields decline further

Investor demand for Ghana's Treasury bills strengthened significantly at the latest primary market auction, with total bids nearly doubling to GH¢5.01 billion from GH¢2.55 billion recorded at the previous auction.

Data from the Bank of Ghana show that investors tendered GH¢5.01 billion across the 91-day, 182-day, and 364-day Treasury bills, exceeding the government's target of GH¢3.54 billion by GH¢1.47 billion.

The auction recorded an oversubscription of 41.5%, reflecting increased investor appetite for government securities amid continued declines in Treasury bill yields.

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The Treasury accepted GH¢4.11 billion of the bids submitted, exceeding its target by GH¢563.96 million.

91-Day Treasury Bill Attracts Highest Demand

The 91-day Treasury bill attracted the largest share of investor demand, recording GH¢3.00 billion in bids, of which the government accepted GH¢2.93 billion.

For the 182-day bill, investors tendered GH¢1.62 billion, while the Treasury accepted GH¢934.50 million.

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The 364-day Treasury bill recorded the lowest demand, attracting GH¢388.45 million in bids, with GH¢243.15 million accepted.

Treasury Bill Yields Decline Across All Tenors

Yields on all three Treasury bills declined at the latest auction, extending the downward trend in government borrowing rates.

The yield on the 91-day Treasury bill fell by four basis points to 4.56%, while the 182-day bill yield declined by seven basis points to 6.20%.

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The 364-day Treasury bill recorded the largest decline, dropping by 12 basis points to 9.48%.

The continued decline in yields suggests that the government is borrowing at lower rates across the short-term securities market, while investors are accepting reduced returns on Treasury bills.

Government Targets GH¢5.57bn in Next Treasury Bill Auction

For the next auction, the government is targeting GH¢5.57 billion through the issuance of 91-day, 182-day, and 364-day Treasury bills.

The target represents a significant increase from the GH¢3.54 billion sought at the latest auction, as the government looks to raise additional funds through the domestic debt market.