Investor demand at the latest government Treasury bill auction more than doubled the state’s financing target, as total bids of GH¢17.10 billion exceeded the GH¢6.99 billion target by over 114 percent.
This underscores sustained confidence in government securities amid easing monetary conditions.
According to auction results released by the Bank of Ghana (BoG), the government accepted GH¢12.30 billion of the total bids tendered, which reflects strong market appetite but a measured borrowing approach by the authorities.
The 364-day bill recorded the highest demand, attracting GH¢6.54 billion in bids, representing about 38.2 percent of total tenders submitted.
Of this amount, GH¢5.97 billion was accepted, which makes it the most subscribed and absorbed instrument at the auction.
The 91-day bill also saw strong interest, with investors tendering GH¢5.90 billion. However, the government accepted GH¢2.78 billion, which indicates selective uptake.
Similarly, bids worth GH¢4.65 billion were submitted for the 182-day bill, out of which GH¢3.54 billion was accepted.
Meanwhile, interest rates declined across the yield curve, reflecting the impact of the central bank’s recent 250 basis points cut in the monetary policy rate.
The yield on the 91-day Treasury bill fell by 37 basis points to 10.82 percent, while that of the 182-day bill declined to 12.38 percent from 12.66 percent previously. The yield on the 364-day bill also eased by 24 basis points to 12.82 percent.
Market watchers say the combination of strong oversubscription and falling yields points to improving liquidity conditions and rising investor confidence, as expectations of a sustained easing cycle gain traction.
A Business Desk Report