Treasury Bill Sale Exceeds Expectations with GHS 5.8 Billion Raised Amid Yield Gains
The Government of Ghana has raised GHS 5.824 billion ($500 million) in its latest Treasury bill auction, exceeding its target of GHS 5.623 billion by GHS 201 million.
This marks the fifth consecutive week that the government has outstripped its auction targets, underscoring strong investor demand for Ghana’s short-term debt securities amid rising yields.
The auction on November 8 saw especially high demand for the 91-day bill, which attracted bids amounting to GHS 5.10 billion.
Investor interest was also strong for the 182-day and 364-day bills, raising GHS 560 million and GHS 157 million, respectively.
Increases in yields are likely to have been the reason for the increased demand for the short-term debt instruments.
The 91-day bill yielded 26.82%, up 0.26 percentage points from the previous auction, while the 182-day bill saw a yield of 27.67%, a 0.09 percentage point increase. The 364-day bill also ticked up to 29.12%, marking a 0.09 percentage point rise.
The government’s reliance on short-term securities to meet financing needs is set to continue, with plans to raise GHS 6.22 billion through another auction next week.
As Ghana grapples with a challenging fiscal landscape, the consistent appetite for T-bills suggests investor confidence remains resilient, but it also underscores the government’s ongoing need to attract capital through domestic debt markets.
