Accra: The Government of Ghana has recorded strong investor demand for Treasury bills for the second auction, with total bids exceeding the target by GHS1.17 billion.
According to Ghana Web, auction results released by the Bank of Ghana, investors submitted bids worth GHS5.80 billion against a target of GHS4.30 billion, representing an oversubscription of 34.8%.
The government, however, accepted GHS5.48 billion, rejecting some bids in what analysts say reflects efforts to maintain pricing discipline by turning down relatively expensive offers. The 91-day Treasury bill attracted the highest investor interest, recording GHS3.83 billion in bids, of which GHS3.65 billion was accepted. The 182-day bill received GHS709.83 million in bids, with GHS671.72 million accepted, while the 364-day bill recorded GHS1.26 billion in bids, of which GHS1.15 billion was accepted.
The strong appetite for short-term instruments was partly driven by the recent bearish performance of the equity market, pushing investors towards safer government securities. The Bank of Ghana also noted that the relatively lower auction target may have contributed to the strong subscription levels.
Yields on Treasury bills, however, continued to rise across all tenors. The 91-day bill increased by 3 basis points to 4.91%, while the 182-day bill rose marginally to 7.04% from 7.03% the previous week. The 364-day bill climbed by 25 basis points to 10.38% from 10.13%.
The Treasury has indicated it is targeting approximately GHS4.49 billion in the next auction as investors position themselves ahead of the Monetary Policy Committee (MPC) decision. Despite strong demand, rising yields suggest investors continue to price in inflation risks ahead of the upcoming MPC meeting.