Investor demand for Treasury bills remained robust on the primary market last week, with the government surpassing its fundraising target by more than GH¢1.4 billion.
According to results released by the Bank of Ghana, investors submitted a total of GH¢7.37 billion in bids across the 91-day, 182-day and 364-day Treasury bills, while the government accepted GH¢6.01 billion.
The strong outtturn, which represents an oversubscription of 31%, signals a revival in investor appetite for short-term government securities after an earlier spell of weak demand. This comes amid a gradual upward correction in yields as the Treasury’s financing needs intensify.
The 364-day bill dominated investor interest, attracting GH¢5.43 billion in bids. The government accepted GH¢4.29 billion, accounting for the lion’s share of the total funds mobilised.
The 91-day bill drew bids worth GH¢1.48 billion, of which GH¢1.34 billion was accepted. Meanwhile, the 182-day bill recorded GH¢461.91 million in tenders, with the government accepting GH¢378.80 million.
Yields moved higher across the curve. The 91-day bill rose by 43 basis points to 5.73%, up from 5.30% in the previous auction. The 182-day bill climbed 56 basis points to 7.69% from 7.13%, while the 364-day bill surged 146 basis points to 12.82%, compared with 11.36% a week earlier.
Analysts expect the next auction to remain oversubscribed as the upward adjustment in yields continues to attract investor demand.
Looking ahead, the government plans to raise GH¢3.37 billion in its next Treasury bill auction.
