Treasury Raises GHS 8.07 Billion in T-Bill Auction, Surpassing Target by 55%
The Treasury exceeded expectations in its January 10, 2024, Treasury Bills auction, raising GHS 8.07 billion—55% above its target of GHS 5.19 billion.
The strong investor demand underscores confidence in short-term government securities, reflecting a preference for safe and liquid investments amid ongoing economic challenges.
This auction’s performance significantly outstripped the previous auction on January 3, where GHS 5.37 billion was raised against a target of GHS 4.32 billion, surpassing the goal by GHS 1.04 billion.
Investor Preferences and Yield Movements
The 91-day Treasury bill remained the most sought-after instrument, attracting GHS 5.51 billion in bids.
The 182-day and 364-day bills also drew significant interest, with bids totaling GHS 1.41 billion and GHS 1.14 billion, respectively.
Accompanying the surge in demand was a modest rise in yields. The 91-day bill’s yield increased by 14 basis points to 28.33%, while the 182-day and 364-day bills saw their yields rise by 5 and 2 basis points to 28.96% and 30.17%, respectively.
These adjustments reflect a combination of rising borrowing costs amid fiscal consolidation efforts and investor demand for higher returns, driven by concerns over inflationary pressures and fiscal sustainability.
The government’s ability to attract such strong demand despite rising yields signals investor confidence in its capacity to manage debt obligations.
Looking ahead, the Treasury plans to raise GHS 6.35 billion in the next auction on January 17, 2024.
This reliance on the domestic debt market remains a cornerstone of the government’s strategy to address short-term fiscal needs, pay down existing liabilities, and stabilize the economy.
The success of these auctions will play a critical role in maintaining financial stability and fostering economic growth in the face of fiscal challenges.
