BoG Treasury Bill auction witnesses strong investor demand, oversubscribed by over 30%
The latest auction conducted by the Bank of Ghana witnessed robust demand as investors flocked to acquire treasury bills. With an offering of GH¢1,575.00 million, the auction was oversubscribed by an impressive 31.38%. Bids tendered totaled GH¢2,068.51 million, reflecting significant market interest.
Of the bids received, the Bank of Ghana accepted GH¢1,544.42 million, GH¢297.63 million, and GH¢137.89 million worth of treasury bills across the 91-Day, 182-Day, and 364-Day maturities, respectively. This represented an acceptance rate of 95.72%, indicating the Bank’s willingness to meet investor demand.
Among the three maturities, the 91-Day bill received the highest subscription, reaching GH¢1,632.99 million. Despite the substantial demand, the acceptance rate remained strong at 94.58%. On the other hand, the 364-Day bills had the lowest subscription, with GH¢486.93 million, but all subscriptions were accepted.
Following the auction, the yields on the treasury bills experienced downward pressure. The 91-Day, 182-Day, and 364-Day bills recorded yield declines of 44 basis points (bps), 23 bps, and 40 bps, respectively. As a result, the bills settled at yields of 24.39%, 26.03%, and 29.65%, respectively. The decrease in yields indicates increased investor confidence and a positive market sentiment towards the Bank of Ghana’s debt instruments.
The strong demand for treasury bills and the subsequent decrease in yields demonstrate investor confidence in the Ghanaian economy and the central bank’s commitment to maintaining a stable and attractive investment environment. These developments bode well for the government’s debt management efforts and provide a favorable backdrop for future auctions.
