Investor demand for Treasury bills remains strong, with the government surpassing its auction target by GHS 1.9 billion last week despite rejecting over GHS 10 billion in bids.
According to the latest auction results from the Bank of Ghana, the government sought to raise GHS 7.73 billion but received an overwhelming GHS 9.6 billion in bids, exceeding the target by 165%.
Breakdown of the auction results shows that:
- 91-day T-Bills: Bids totaled GHS 7.38 billion; GHS 4.23 billion accepted.
- 182-day T-Bills: Bids reached GHS 5 billion; GHS 1.43 billion accepted.
- 364-day T-Bills: Bids amounted to GHS 8.11 billion; GHS 3.96 billion accepted.
Despite the strong appetite for short-term government securities, interest rates declined across all tenors. The 91-day and 182-day rates dropped to 24.47% and 25.38%, respectively, from 26.85% and 27.80% in the previous auction. Similarly, the 364-day rate fell to 27.29% from 29.07%.
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Analysts suggest that the declining rates indicate growing investor confidence in the government’s fiscal strategy, with many preferring the relative safety of T-bills amid economic uncertainties.
Looking ahead, the government plans to raise an additional GHS 6.49 billion on Friday, February 28, 2025, as it continues to navigate its borrowing needs while managing yields in the money market.
