Treasury Bills oversubscribed by 29.5% despite yield reductions
The Government of Ghana on Friday successfully mobilized GHS 3.51 billion through its latest T-Bill issuance, significantly surpassing the initial target of GHS 2.71 billion.
This achievement, detailed in the Bank of Ghana’s auction results released Friday evening, represents an oversubscription rate of 29.5% or GHS 801 million above the target.
Despite a reduction in yields across the three tenors offered—91-Day, 182-Day, and 364-Day Bills—investor demand remained robust.
The 91-Day Bill attracted the highest number of subscriptions, followed by the 182-Day and 364-Day Bills. The accepted bids amounted to GHS 2.71 billion for the 91-Day Bill, GHS 608 million for the 182-Day Bill, and GHS 201 million for the 364-Day Bill.
Auction yields settled at 25.03% for the 91-Day Bill and 26.91% for the 182-Day Bill, reflecting a 6 basis points (bps) and 3 bps decline, respectively, from the previous auction rates. The yield for the 364-Day Bill also witnessed a decline of 4 bps, settling at 27.90%.
The oversubscription is a testament to the government’s effective debt management strategy, balancing its immediate financing needs with cost-efficient borrowing. The significant demand for the 91-Day Bill indicates investor confidence in shorter-duration instruments, likely driven by current market dynamics and the pursuit of liquidity.
Looking ahead, the government has set an ambitious target of raising GHS 4.4 billion in the next auction through the issuance of 91-Day, 182-Day, and 364-Day Bills. This upcoming auction will be closely watched as it seeks to build on the momentum of the recent oversubscription, further stabilizing the domestic debt market and ensuring sufficient liquidity for the Government.
The successful auction and the planned future issuances are pivotal in the government’s broader economic strategy, aiming to maintain fiscal stability and support economic growth through efficient market operations.
