Investors’ Love Affair with T-Bill Continues as GHS 18.2 Billion Bids Made for Debt Instruments
Investors submitted bids worth GHS 18.24 billion in last Friday’s Treasury Bill (T-Bill) auction, significantly exceeding the Government’s GHS 6.49 billion target.
The bids represented an overwhelming 181% oversubscription, despite reductions in interest rates on the short-term debt instruments.
Out of the total bids submitted by primary dealers, the Government accepted GHS 7.41 billion—GHS 923 million above its initial target—while rejecting bids worth GHS 10.83 billion.
Investor interest was particularly strong in the 364-day bill, which attracted bids totaling GHS 8.72 billion. However, the Government accepted only GHS 2.01 billion.
Meanwhile, bids for the 91-day and 182-day bills amounted to GHS 6.20 billion and GHS 3.32 billion, with the Government accepting GHS 2.37 billion and GHS 3.02 billion, respectively.
Despite the strong demand, interest rates on the short-term instruments declined. The 91-day and 182-day T-Bills saw rates fall to 20.79% and 22.98%, down from 24.47% and 25.38%, respectively.
The 364-day bill also recorded a drop in yields, settling at 22.69% from a previous rate of 27.29%.
Looking ahead, the Government is set to raise an additional GHS 5.73 billion in short-term debt in the next T-Bill auction scheduled for Friday, March 7, 2025.
T-Bill Rates Drop by 21.1%
According to the Finance Minister, Dr Cassiel Ato Forson, interest rates on T-Bills have dropped by a cumulative 21.1% within the last 50 days.
In a post on X (formerly Twitter), Dr. Forson highlighted the downward trend across all tenors, attributing it to prudent public debt management measures implemented by the government.
“The 91-day T-Bill rate has declined from 28.34% to 20.79%, marking a 760-basis-point (7.6%) drop, while the 182-day T-Bill rate has fallen from 28.96% to 22.98%, reflecting a 600-basis-point (6%) reduction. Additionally, the 364-day T-Bill rate has dropped from 30.17% to 22.69%, representing a 750-basis-point (7.5%) cut,” he stated.
The Finance Minister noted further that the decline in T-Bill rates signals growing investor confidence in the Ghanaian economy.
