Gov’t Exceeds T-Bill Auction Target for First Time after 8 Consecutive Week of Undersubscription
The Government successfully raised GHS 5.52 billion in its latest Treasury Bill auction on Friday, surpassing its GHS 5.4 billion target.
This represents an oversubscription rate of 2.37% or GHS 128 million, marking the first oversubscription since July following eight consecutive weeks of undersubscription.
The oversubscription in the Treasury’s latest auction can be attributed to the rising yields in short-term debt instruments.
Yields across all Treasury Bill tenors edged up, with the 91-day bill rising by 0.01% to 24.91%, the 182-day bill increasing by 0.02% to 26.80%, and the 364-day bill seeing the most significant uptick of 0.16% to 28.07%. The modest rise in yields likely contributed to the stronger demand.
Investor interest was heavily skewed towards the 91-day bill, which accounted for GHS 4.68 billion in bids, while the 182-day bill received GHS 594 million in bids, and the 364-day bill lagged behind with GHS 245 million.
Looking forward, the government aims to raise GHS 5.88 billion in its next Treasury Bill issuance, again focusing on the 91-day, 182-day, and 364-day maturities, seeking to capitalize on continued investor interest.
