Ghana T-Bills Auction Records 15% Oversubscription as Investor Appetite Grows

Ghana’s Treasury market rebounded strongly last week, with the latest Treasury bills (T-bills) auction recording its first oversubscription in a month. After four consecutive weeks of weak demand, investors showed renewed interest, pushing subscription levels well above the government’s target.

According to data from the Bank of Ghana, total bids amounted to GH¢4.38 billion across the 91-day, 182-day, and 364-day maturities. Out of this, the government accepted GH¢4.36 billion, comfortably surpassing its GH¢3.78 billion target by 15.34 per cent. Analysts say the rebound highlights a growing appetite for short-term government securities among investors seeking safer returns in uncertain economic conditions.

A closer look at the auction results shows that demand for the 91-day bill was particularly strong, with GH¢3.62 billion accepted out of GH¢3.63 billion tendered. The 182-day bill also attracted GH¢576 million in bids, of which GH¢566 million was accepted. For the longer 364-day bill, GH¢182 million was taken up from the GH¢187 million offered. This near-total acceptance suggests the Treasury was willing to accommodate strong investor demand while maintaining prudent borrowing levels.

Market watchers link the oversubscription to a relatively modest issuance target, which made it easier for the government to absorb most of the bids. At the same time, investors seeking short-term, low-risk placements saw T-bills as an attractive option. Yields inched higher at the shorter end of the curve, with the 91-day yield rising 10 basis points to 10.42 per cent and the 182-day yield increasing slightly to 12.41 per cent. Interestingly, the 364-day bill bucked the trend, easing marginally by 2 basis points to 12.97 per cent.

Looking ahead, the government plans to raise GH¢8.2 billion in the next auction, testing whether this renewed investor confidence will be sustained. With yields stabilizing and liquidity levels remaining robust, market analysts expect investor participation to stay strong, especially for shorter tenors that offer quicker turnaround and predictable returns.

Source: citi newsroom