Investor demand for Treasury bills rebounded strongly on the primary market last week, with the government exceeding its fundraising target.
The latest Treasury bill auction saw the government raise GH¢5.83 billion, surpassing its target of GH¢5.44 billion by GH¢389.86 million, representing an oversubscription of 11.9%.
The turnaround comes after two consecutive weeks of weak investor demand, signalling renewed investor appetite for short-term government securities.
Results released by the Bank of Ghana showed that investors submitted a total of GH¢6.09 billion in bids across the 91-day, 182-day and 364-day Treasury bill tenors, with the government accepting GH¢5.83 billion.
The 91-day Treasury bill continued to attract the strongest investor interest, drawing bids worth GH¢3.56 billion, of which GH¢3.51 billion was accepted.
Demand for the 182-day bill was also robust, with investors tendering GH¢1.71 billion. The government accepted GH¢1.68 billion of the bids received.
Meanwhile, investors submitted GH¢815.57 million for the 364-day bill, with GH¢640.25 million accepted.
Yields edged higher across the curve. The yield on the 91-day bill rose by 2 basis points to 5.01%, from 4.99% in the previous auction. The 182-day bill increased by 5 basis points to 7.09%, from 7.04%, while the 364-day bill climbed by 38 basis points to 10.84%, from 10.46%.
Analysts believe the gradual upward adjustment in yields is attracting investor funds, as reflected in the Treasury’s improving money demand.
Looking ahead, the government aims to raise GH¢7.43 billion.
