Investor appetite for Ghana’s short-term debt instruments remains strong as the government continues to exceed its Treasury bill (T-Bills) targets, despite declining interest rates.
At the latest auction, the government raised GHS 8.77 billion—surpassing its GHS 8.26 billion target by over GHS 514 million, according to figures released by the Bank of Ghana.
This represents an oversubscription of 6.22%, highlighting sustained market confidence in the country’s short-term debt.
A breakdown of the bids shows a solid demand for the 91-day bill, with all GHS 6.2 billion tendered being accepted. The 182-day bill attracted GHS 1.83 billion in bids, with GHS 1.80 billion accepted.
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For the 364-day bill, however, only GHS 746 million out of GHS 1.2 billion tendered was accepted, signaling a more cautious approach by the government towards long-term obligations.
Interestingly, this strong demand comes as T-bill rates continue to decline. The 91-day bill dropped by 186 basis points to 15.88%, while the 182-day and 364-day bills fell to 16.93% and 17.98%, respectively.
The consistent decline in rates points to the government’s strategy to lower borrowing costs. However, the recent figures suggest that the rate of decline is beginning to ease, possibly indicating a stabilization phase.
In the upcoming auction, the government aims to raise GHS 6.14 billion as it continues to manage its short-term financing needs through the local debt market.
