T-Bill Yields Rise as January 17 Auction Attracts GHS 8.83 Billion in Bids
The Treasury outperformed expectations in its January 17 auction, raising GHS 8.83bn—39.1% above its GHS 6.35bn target—as robust investor demand for short-term securities underscored continued confidence in government instruments.
The auction marginally exceeded the previous week’s result, where the Treasury raised GHS 8.07bn against a GHS 5.19bn target, underscoring the sustained appetite for safe and liquid assets in a challenging economic environment.
Demand Across Tenors
The 91-day Treasury bill was the standout performer, attracting GHS 5.64bn in bids, while the 182-day and 364-day instruments garnered GHS 1.30bn and GHS 1.88bn, respectively.
Yields edged higher across all maturities. The 91-day bill rose by 8 basis points to 28.41%, while the 182-day and 364-day bills increased by 1 basis point and 11 basis points to 28.97% and 30.28%, respectively.
The incremental rise in yields reflects a confluence of factors, including inflationary concerns and investor expectations for higher returns.
Market Confidence Despite Rising Yields
The success of the auction highlights market confidence in the government’s ability to meet debt obligations, even as borrowing costs increase. Analysts view the strong uptake as a positive signal for the Treasury’s fiscal management amid broader economic pressures.
Looking ahead, the Treasury aims to raise GHS 6bn in its next auction on January 24, as domestic borrowing remains a key pillar of the government’s strategy to address short-term financing needs and stabilize the economy.
While the results demonstrate the resilience of Ghana’s debt market, the government faces a challenging balancing act between meeting financing requirements and managing investor expectations for higher yields.