Government Achieves GH¢6.67bn in Treasury Bill Auction Oversubscription-GHANA

The government of Ghana successfully raised GH¢6.67 billion in its latest treasury bill auction, surpassing its target by a slight margin, according to the Bank of Ghana. This auction saw a modest oversubscription rate of 2.81%, with the total bids exceeding the target by GH¢66.21 million. However, GH¢121.7 million worth of bids were rejected during the process.

The 91-day treasury bill attracted the highest demand, receiving GH¢5.7 billion in bids, which accounted for 84.4% of total submissions. The government accepted GH¢5.67 billion of these bids. Additionally, the 182-day bill generated GH¢908 million in bids, all of which were fully accepted, while the 364-day bill secured just over GH¢187 million, also completely taken up by the government.

Despite the strong demand for treasury bills, yields on all tenors showed a slight decline. The 91-day bill yield dropped by 20 basis points to 15.45%, the 182-day bill fell to 16.21% from 16.50%, and the 364-day bill decreased by 18 basis points to 18.65%. This downward trend in yields reflects changing market conditions and investor sentiment.

In summary, the government’s latest treasury bill auction demonstrates strong investor interest and a successful fundraising effort, although some bids were rejected. The decrease in yields signals a shift in the market but does not overshadow the oversubscription, which highlights the continued demand for government debt instruments.

Source: Citi newsroom