Ghana Treasury Bill Auction: Gov’t Raises GH¢12.83bn as 364-Day Rates Hit 13.06%

Ghana’s government successfully raised GH¢12.83 billion in its latest Treasury bill auction, surpassing expectations as investor demand for short-term government securities remained strong. The Bank of Ghana reported that total bids across the 91-day, 182-day, and 364-day bills reached GH¢15.91 billion, exceeding the initial target of GH¢9.83 billion by GH¢2.97 billion.

The oversubscription rate of 61.95% marks the ninth consecutive week of excess demand, signaling robust investor confidence in Ghana’s sovereign instruments. Analysts say this trend highlights the growing appeal of government securities as a stable and secure investment, particularly amid evolving monetary policies.

Among the bills, the 364-day Treasury bill attracted the highest interest, drawing bids of GH¢7.45 billion, with GH¢5.07 billion accepted. The 182-day bill was almost fully absorbed at GH¢4.28 billion from bids of GH¢4.29 billion, while the 91-day bill recorded GH¢3.44 billion in uptake from GH¢4.16 billion in bids.

Interest rates showed modest changes, with the 91-day bill remaining at 11.19%, the 182-day bill rising slightly to 12.66%, and the 364-day bill experiencing the sharpest increase to 13.06%. Analysts suggest the strong demand for longer-dated bills reflects investors’ desire to secure attractive yields before any potential monetary policy easing.

Looking ahead, the Treasury plans to raise GH¢6.99 billion in the next auction across all three short-term instruments. Market watchers will closely monitor investor behavior, as Treasury bills continue to offer a reliable avenue for capital preservation and short-term returns in Ghana’s financial market.

source: citinewsroom