T‑bill auction sees 38% oversubscription, yields climb

Government treasury bill auction recorded a 38% oversubscription for the second consecutive week, with investors bidding GH₵8.01 billion against a target of GH₵5.80 billion.

According to the Bank of Ghana, the Central Bank accepted GH₵6.95 billion of the total bids, signalling robust appetite for short‑term government securities.

The 91‑day bill attracted about GH₵4.9 billion in bids, representing just over 61 % of the total auction, and the accepted amount stood at GH₵4.09 billion.

The 182‑day bill saw GH₵2.098 billion tendered, with GH₵1.855 billion approved, while the 364‑day bill drew GH₵1.014 billion in bids and roughly GH₵1.009 billion were accepted.

Yield movements reflected the heightened demand. The 91‑day yield rose by three basis points to 11.08 %, and the 182‑day yield climbed to 12.55 % from 12.12 % the previous week.

In contrast, the 364‑day yield slipped to 12.70 % from 13.08 %.

“The strong subscription demonstrates confidence in Ghana’s fiscal management and the effectiveness of our monetary policy,” said a Bank of Ghana spokesperson, who declined to provide a name.

Analysts note that sustained oversubscription could put downward pressure on yields, making short‑term borrowing cheaper for the government while offering attractive returns for investors.

Economists warn that persistent high yields on longer‑term bills may signal inflation expectations, urging the Ministry of Finance to monitor debt‑service costs closely.

The next treasury bill auction is scheduled for early next month, where market participants will be watching whether the oversubscription trend continues.

Image Source: MYJOYONLINE