Gov’t Records GHS 421m Oversubscription in Latest T-Bill Auction, Breaking Undersubscription Trend
Government has successfully broken a three-week streak of Treasury bill undersubscriptions in its latest auction, raising GHS 5.97 billion against a target of GHS 5.54 billion, representing an oversubscription of approximately GHS 421 million.
The auction, held on Friday, May 23, comes after a particularly weak showing in the previous week when the government missed its target by GHS 1.33 billion. This rebound in investor interest signals a potential restoration of confidence in short-term government securities, aided by easing yields and improving macroeconomic conditions.
Total bids submitted by investors amounted to GHS 6.53 billion, although only GHS 5.97 billion was accepted. The 91-day bill dominated investor interest, attracting GHS 4.95 billion in bids, of which GHS 4.58 billion was accepted.
Demand for relatively longer-dated instruments was also strong as the 182-day bill saw full coverage, with all GHS 890 million in bids accepted. The 364-day bill received GHS 689 million in bids, with the government accepting GHS 499 million.
Yields continued their downward trajectory across all three tenors, reflecting the Bank of Ghana’s dovish monetary stance. The 91-day yield dropped 18 basis points to 14.92%, the 182-day eased by 13 basis points to 15.55%, while the 364-day yield posted the sharpest decline—78 basis points—to 16.00%. The softening yield curve signals ongoing market expectations for disinflation and declining interest rate risks.
The upcoming auction, slated under Tender 1957, targets a significantly lower amount of GHS 3.89 billion—about GHS 1.65 billion less than the previous target—suggesting a cautious issuance strategy amid moderating liquidity needs and a shifting rate environment.
Analysts note that sustained investor appetite, coupled with a declining cost of borrowing, could further support government financing efforts while easing pressure on domestic debt rollover risks.
