Investor demand for Treasury bills remained resilient at the latest primary market auction, with total bids exceeding the government’s target by 2.83%.

Data from the Bank of Ghana show that investors tendered a total of GH¢8.20 billion, compared with the government’s target of GH¢7.97 billion.

A look at the data indicates that investor bids exceeded the government’s target by approximately GH¢225.73 million.

The government accepted a total of GH¢7.21 billion of the bids submitted, representing about 87.9% of total investor bids.

Despite the strong subscription rate, total investor bids fell slightly by 18% week on week.

The 91-day Treasury bill continued to attract the largest volume of investor interest, with GHS4.56 billion tendered, of which the government accepted GHS4.52 billion.

The 182-day bill received GHS2.07 billion in bids, of which GHS1.82 billion was accepted.

Meanwhile, the 364-day bill garnered GHS1.56 billion in bids, of which the government accepted GHS867.93 million.

The sustained liquidity pushed yields further down along the curve, with the 91-day yield falling by about 11 basis points to 4.69%, from 4.80% the previous week, while the 182-day yield declined by about 17 basis points to 6.51%, from 6.68%.

The 364-day bill recorded the smallest decline, falling by about 1 basis point to 10.10%, from 10.11%.

Analysts believe that as the concentration of liquidity dilutes towards other tighter alternatives in the market, yields will gradually approach an equilibrium, where further declines become relatively muted.

For the next auction, the government is targeting GHS4.12 billion through the issuance of 91-day, 182-day and 364-day Treasury bills.