Government last week mobilized GHS 4.6 billion through its latest T-Bill issuance, slightly surpassing the target of GHS 4.5 billion.
This upsurge comes three consecutive weeks after missing its target in the demand for T-bills resulting in a marginal oversubscription of 1.07 percent of the GH¢4.5 billion target size.
The slight heightening of investor appetite for government debt instruments in the primary market, indicated that investors demonstrated strong interest – tendering an impressive GH¢3.8 billion of the 91-day bills.
About GHS 500 million of the bids from investors came from the 182-day bill, while GHC 225 million were made up of the 364-day bills.
Also, yields on the treasury bills surged with interest rates averaging between 25 and 28 percent
The yield on the 91-day bill surged 16 basis points to 25.62 percent.
The 182-day bill also increased to 26.90percent from the previous weeks’s 26.80% by 10 basis point.
That of the 364-day bill surged by 7 basis points to 28.58 percent.
For some market analysts, the reduction in target limits likely made the offerings more attractive to investors, aligning better with market expectations. Additionally, improved investor confidence may have stemmed from stable economic indicators or government assurances regarding fiscal policies
They are however anticipating slight over subscriptions ahead as the targets submitted are within the market bid range
