Investor Confidence Soars as Treasury Bill Bids Hit GH¢10.03 Billion

Investor demand for Ghana’s Treasury bills surged last week, with the latest primary market auction attracting bids worth GH¢10.03 billion—almost double the government’s fundraising target of GH¢5.67 billion.

Results released by the Bank of Ghana show that the auction was oversubscribed by 77%, reflecting strong investor demand for short-term government securities and renewed confidence in the domestic debt market.

The Treasury accepted GH¢7.38 billion of the total bids, exceeding its financing target by GH¢1.71 billion after taking up a larger share of investor subscriptions.

The 364-day Treasury bill remained the most sought-after instrument, attracting GH¢5.65 billion in bids. The government accepted GH¢4.53 billion of that amount, making it the largest contributor to the funds raised during the auction.

The benchmark 91-day Treasury bill recorded bids of GH¢2.98 billion, with GH¢1.80 billion accepted, while the 182-day bill received GH¢1.40 billion in subscriptions, of which GH¢1.06 billion was accepted.

Yields were mixed across the three tenors. The 91-day bill eased slightly by one basis point to 5.86% from 5.87% at the previous auction, while the 182-day bill remained unchanged at 7.79%. The yield on the 364-day bill, however, climbed seven basis points to 12.99% from 12.92%, indicating continued investor preference for higher returns on longer-term government securities.

The latest auction represents a significant turnaround from the previous sale, which attracted just GH¢4.16 billion in bids. The sharp rise in subscriptions signals growing investor confidence in Treasury bills despite the prevailing interest rate environment.

Looking ahead, the government is targeting GH¢7.36 billion in its next Treasury bill sale under Tender 2016 to finance its short-term borrowing requirements.