The government has exceeded its treasury bills target by 253% as demand for Treasury bills continues to outstrip the government’s issuance. This marks the seventh consecutive over-subscription of the year, signaling robust investor appetite despite the state’s decision to exercise significant restraint in debt intake.
According to auction results by the Bank of Ghana, the government received bids worth over GH¢22.6 billion across the 91, 182, and 364-day tenors. However the government rejected about GH¢13 billion of the bids, but accepted GH¢8.9 billion.
A breakdown of the results shows that for the 91-day bill, GH¢3.41 billion was accepted out of GH¢7.64 billion tendered. For the 182-day bill, GH¢2.09 billion was taken from GH¢7.27 billion in bids, while the 364-day bill saw GH¢3.49 billion accepted from GH¢7.76 billion offered by investors.
Government accepted roughly 40 per cent of the total bids offered but still significantly higher than its initial target of GHC6.415 billion. This strategy appears to be working, as yields across all tenors saw a downward trend.
Amid the prevailing liquidity build-up in the market, yields declined sharply across the curve. The 91-day bill rate dropped by 136 basis points to 8.60 percent from 9.96 percent. The 182-day yield fell by 114 basis points to 10.67 percent from 11.81 percent, while the 364-day bill eased by 100 basis points to 11.06 percent from 12.06 percent.
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