After six weeks of muted activity, Ghana’s treasury bill market has staged a strong comeback, signaling renewed investor confidence. Fresh data from the Bank of Ghana shows that the latest auction recorded an impressive 110.84% oversubscription, a clear sign that investors are eager to lock in short-term government securities.

Investors tendered a total of GH¢6.03 billion across the 91-, 182-, and 364-day bills, with the Treasury accepting GH¢5.78 billion—nearly double its target of GH¢2.86 billion. The 91-day bill led demand with GH¢2.57 billion in bids, closely followed by the 364-day bill with GH¢1.81 billion, while the 182-day bill attracted GH¢1.64 billion.

Market analysts attribute the surge in demand to a combination of factors. A lower issuance target created scarcity, but the main driver appears to be renewed bank participation following the Bank of Ghana’s 350 basis points policy rate cut to 18%. The move compressed returns on the 56-day bill, redirecting liquidity toward treasury bills and boosting investor appetite.

Yields showed mixed movements across the tenures. The 91-day bill rate edged down slightly to 11.05%, the 182-day bill dropped to 12.43%, while the 364-day bill inched up to 13.08%, reflecting moderate adjustments amid strong demand.

Looking ahead, the Treasury plans to mobilize GH¢5.80 billion in its next auction across all three tenures. The strong rebound in investor participation suggests confidence in Ghana’s short-term debt market may continue, offering opportunities for both banks and retail investors seeking secure investment options.

source: citi newsroom