Bank of Ghana’s Treasury Bills auction sees strong demand and oversubscription
In a recent Treasury bills auction conducted by the Bank of Ghana, investor demand remained robust, leading to an oversubscription of 4.42% on Friday. The auction, with a total value of GH¢2,202.00 million, attracted significant interest from market participants, resulting in total subscriptions reaching GH¢2,299.32 million. The Bank of Ghana accepted bids worth GH¢2,278.18 million, reflecting a commendable acceptance rate of 99.08%.
Among the various bill tenures offered, the 91-Day bill emerged as the clear favorite, garnering the highest subscription of GH¢1,879.42 million. The Bank of Ghana accepted GH¢1,861.42 million worth of 91-Day bills, indicating strong investor appetite for short-term debt instruments. The 182-Day bill received subscriptions totaling GH¢304.16 million, which precisely matched the acceptance amount. In contrast, the 364-Day bill witnessed the lowest subscription of GH¢115.74 million, with GH¢112.60 million being accepted.
The Bank of Ghana’s Treasury bills auction resulted in notable yield gains across all three bill categories. The 91-Day bill experienced a substantial yield increase of 128 basis points (bps), settling at an attractive yield of 22.97%. Investors seeking slightly longer-term options found the 182-Day bill appealing, which exhibited a yield gain of 47 bps to reach 25.44%. The 364-Day bill, with the longest tenure, recorded a yield gain of 34 bps, ultimately settling at a favorable yield of 29.25%.
These yield levels indicate the market’s confidence in the stability and attractiveness of Ghana’s Treasury bills. The higher yields offer potential returns for investors while aligning with the prevailing interest rate environment.
The oversubscription of the Bank of Ghana’s Treasury bills auction signifies investor confidence in the country’s economic prospects and highlights the effectiveness of the central bank’s monetary policy measures. The continued strong demand for short-term debt instruments showcases the attractiveness of the Ghanaian market to both domestic and international investors.
As the central bank actively manages liquidity and monetary conditions, the successful auction paves the way for the government to secure the necessary funds while maintaining favorable borrowing costs. The results also reflect investors’ confidence in Ghana’s economic fundamentals, providing a positive outlook for the country’s financial markets.
The Bank of Ghana’s recent Treasury bills auction demonstrated robust demand, oversubscription, and favorable yield levels across multiple bill tenures. The strong investor participation affirms Ghana’s standing as an attractive investment destination within the global financial landscape.
