Ghana’s Treasury bill auction has seen its first oversubscription in two months, as investor demand surged nearly 98% above the government’s target, signaling renewed market confidence.
According to data from the Bank of Ghana, the auction attracted total bids worth GH¢20.98 billion, far exceeding the government’s target of GH¢5.44 billion. The Treasury accepted GH¢10.64 billion, which was enough to meet both the target and an impending maturity of GH¢5.24 billion.
The strong interest marks a turnaround in market sentiment, following weeks of underwhelming performance in short-term government securities.
Breakdown of Accepted Bids
91-day bills: GH¢5.65 billion accepted out of GH¢13.77 billion
182-day bills: GH¢2.99 billion accepted out of GH¢4.22 billion
364-day bills: GH¢2 billion accepted out of GH¢2.98 billion
Analysts attribute the resurgence to a recent policy shift by the Bank of Ghana, particularly the reduction in yields on the BoG Bills, which previously offered returns around 27%. With the rate cut, investors have pivoted toward Treasury bills for relatively better returns.
However, yields on these instruments have declined sharply:
91-day: Dropped by 93 basis points to 13.72%
182-day: Fell by 41 basis points to 14.61%
364-day: Declined by 68 basis points to 14.73%
Despite the lower yields, the high subscription rate underscores growing investor confidence in the government’s fiscal direction and macroeconomic outlook.