For the third consecutive time, the government has exceeded its Treasury bill (T-bill) target, surpassing it by GHS 2.5 billion. The latest auction results from the Bank of Ghana reveal that while the government aimed to raise GHS 6.3 billion, it received bids totaling GHS 8.8 billion.
This led to an oversubscription of 39.14 percent in the money market.
Investor interest was particularly strong for the 91-day Treasury bill, which attracted GHS 5.64 billion in bids out of the GHS 5.68 billion tendered. The 182-day bill followed closely, drawing in GHS 1.30 billion in bids from a total of GHS 1.31 billion. The 364-day bill also performed well, attracting all GHS 1.8 billion offered.
The rejected bids were likely those that fell outside the yield range set by the Treasury.
This surge in demand comes against a backdrop of rising yields on Treasury bills, with interest rates averaging between 28% and 30%.
The yield on the 91-day bill increased by 8 basis points to 28.42 percent, while the 182-day bill saw a slight rise of 1 basis point to 28.97 percent. The yield on the 364-day bill surged by 11 basis points to 30.29 percent.
Market analysts suggest that this sustained robust demand for T-bills reflects improving market confidence and a growing appetite among investors to lock in at the current high interest rates.
Looking ahead, the Treasury is set to raise GHS 8.07 billion in the next T-bill auction.
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