The Government of Ghana has bounced back in the Treasury market (T-bill), raising GHS 5.97 billion in its latest auction—GHS 423.37 million more than its target.
This marks the first oversubscription in four weeks and reflects a rebound in investor confidence.
The Bank of Ghana published the results, showing a 7.63% oversubscription rate.
91-Day Bills Lead the Demand
Investor demand was strongest for the 91-day bill, which saw bids of GHS 4.95 billion.
The government accepted GHS 4.58 billion of this amount. The 182-day bill attracted GHS 890 million, with the government accepting the full amount.
For the 364-day bill, bids totaled GHS 698 million, and GHS 499 million was taken up.
Interest Rates Continue to Decline
Despite strong demand, yields continued to drop.
The 91-day yield fell to 14.92%, down from 15.10% last week.
The 182-day bill dropped to 15.55%.
The 364-day instrument declined to 16.00%.
Investor Sentiment Shows Cautious Optimism
Analysts say the lower rates reflect high liquidity and growing investor optimism. Many expect a reopening of the bond market soon, which could further drive activity.
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“The auction shows strong short-term interest from investors,” one market watcher said. “But the lower yields mean investors are also watching inflation and fiscal stability closely.”
The government plans to raise GHS 3.89 billion in its next auction. Investors will look for signs from the Ministry of Finance and the Bank of Ghana on debt restructuring, inflation trends, and fiscal performance.
So far, Treasury bills (T-bill) remain a key funding tool for the government, especially as it balances IMF program targets with local market expectations.
As yields trend lower, analysts expect careful positioning from both domestic and foreign investors, particularly those looking for stable returns in a gradually improving macroeconomic environment.
Key Points:
- Amount Raised: GHS 5.97 billion
- Target: GHS 5.55 billion
- Oversubscription: GHS 423.37 million (7.63%)
- Top Performer: 91-day bill
- Yields: All tenors declined
- Next Target: GHS 3.89 billion
