Accra: The Bank of Ghana exceeded its Treasury bill target at the latest auction after strong investor demand pushed total bids to GHS7.37 billion, with more than GHS6 billion accepted, according to auction results released by the Bank of Ghana.
According to Ghana Web, the bank accepted GHS6.01 billion out of the GHS7.37 billion tendered across the 91-day, 182-day, and 364-day Treasury bills, surpassing its initial target by more than GHS1.4 billion. This outcome represents an oversubscription of about 31%, indicating renewed investor appetite for short-term government securities.
"The auction recorded a strong investor response, with bids significantly exceeding the government's target," the results showed. "The oversubscription reflects growing demand for Treasury bills as yields continue to trend upwards."
The 364-day Treasury bill attracted the highest interest from investors, recording GHS5.43 billion in bids. Out of that amount, the government accepted GHS4.29 billion, which constituted the majority of the funds mobilized during the auction. Demand for the shorter-term instruments also remained strong. Investors submitted GHS1.48 billion in bids for the 91-day bill, with GHS1.34 billion accepted, while the 182-day bill attracted GHS461.91 million in tenders, out of which GHS378.80 million was accepted.
Yields increased across all three tenors, with the 91-day bill rising to 5.73% from 5.30%, the 182-day bill climbing to 7.69% from 7.13%, and the 364-day bill recording the sharpest increase, moving to 12.82% from 11.36%. Analysts and policymakers believe that the upward adjustment in yields will continue to attract investors in the coming weeks. "Should yields maintain their current trajectory, demand is expected to remain robust at subsequent auctions," they noted.
The government is targeting GHS3.37 billion in its next Treasury bill sale.