Ghana Treasury Bills Oversubscribed as Investor Demand Surges Despite Falling Yields

Investor appetite for Ghana’s short-term government securities remained strong last week, as Treasury bills were oversubscribed despite falling yields. According to the Bank of Ghana’s latest auction data, the government received bids totaling GH¢3.43 billion, exceeding its target of GH¢3.01 billion by 14.14 percent.

The 91-day bill emerged as the most sought-after security, drawing bids of GH¢2.58 billion, of which GH¢2.57 billion were accepted. This was followed by the 182-day note, where GH¢608 million was taken up out of GH¢613 million submitted. The 364-day bill also recorded robust interest, with GH¢247 million accepted against GH¢250 million tendered.

Market analysts attribute the oversubscription to sustained investor confidence in short-term instruments, improved uptake by the Treasury, and a relatively modest issuance target. The consistent demand underscores the attractiveness of Treasury bills as a low-risk investment option amid ongoing economic adjustments.

However, yields on all three maturities fell slightly during the week. The 91-day bill rate dropped by seven basis points to 10.45 percent, the 182-day fell by eight basis points to 12.36 percent, while the 364-day bill eased by seven basis points to 12.88 percent. Lower yields typically indicate stronger investor demand, reflecting a preference for safety and liquidity over higher returns.

Looking ahead, the government plans to raise GH¢5.58 billion in its next auction. Analysts say the outcome of the upcoming sale will provide further insight into investor sentiment and the direction of short-term interest rates in Ghana’s domestic debt market.

source: citi newsroom