Treasury Bill sees 76.8% oversubscription as Gov’t mobs up GHS 4.1bn in bids
Testament to the enduring appeal of government-backed securities, the Government’s treasury bill auction witnessed a remarkable surge in investor interest last week. Against a target of GH¢2,353 million, bids swelled to GH¢4,161 million, reflecting an overwhelming 76.8% oversubscription from keen investors.
The Government accepted the entire pool of bids, amounting to GH¢4,161 million, showcasing a 100% acceptance rate. This robust demand underscores the confidence investors place in the short-term debt instruments.
The 91-day Treasury Bill emerged as the preferred choice among investors, garnering the highest number of subscriptions. It was closely trailed by the 182-Day and 364-Day Bills, signifying varying investment horizons and risk appetites among market participants.
Post-auction allocations revealed successful bids of GH¢1,705 million, GH¢510 million, and GH¢138 million for the 91-Day, 182-Day, and 364-Day tenors, respectively. This distribution provides insights into the liquidity preferences and investment strategies of investors in the current economic landscape.
The auction witnessed a marginal decline in yields across all tenors, settling at average rates of 25.74%, 28.24%, and 28.84% for the 91-Day, 182-Day, and 364-Day Bills, respectively.
Last week’s decline in yields marks the 13th consecutive week of yield contraction for these Treasury Bill tenors, reflecting easing interest rates.
As the treasury gears up for the next auction, it has set its sights on raising GH¢2,808 million through the issuance of 91, 182, and 364-Day Bills. This revised target aims to address impending maturities and meet the government’s funding requirements in the short term.
The recent Treasury bills auction underscores the resilience and attractiveness of Ghana’s debt market, as evidenced by robust demand and favorable yield movements. As the treasury navigates evolving economic dynamics and upcoming maturities, market analysts will be closely monitoring market developments and investor responses in subsequent auctions.
