The latest Ghana T-bill auction attracted GH¢5.01 billion in bids against a government target of GH¢3.54 billion, underscoring continued investor demand for short-term government securities.
The November 6 auction was oversubscribed by about 41%, according to Bank of Ghana results.
Government accepted GH¢4.11 billion, about GH¢564 million above its target, while rejecting roughly GH¢905 million worth of bids.
Investors favour 91-day bill
Demand remained heavily concentrated at the short end of the market.
Investors submitted GH¢3.00 billion for the 91-day bill, representing nearly 60% of all bids received. Government accepted GH¢2.93 billion.
The 182-day instrument attracted GH¢1.62 billion, of which GH¢934.5 million was accepted. Bids for the 364-day bill totalled GH¢388.45 million, with government taking GH¢243.15 million.
The results point to ample market liquidity, although investors continue to show a clear preference for shorter maturities.
T-bill yields fall further
Rates declined across all three tenors.
The 91-day bill eased by about four basis points to 4.56%, while the 182-day rate dropped roughly six basis points to 6.20%.
The 364-day yield recorded the largest decline, falling about 12 basis points to 9.48%.
Government’s ability to raise more than its target while rejecting a sizeable share of submitted bids suggests the Treasury retains room to resist higher borrowing costs.
The Bank of Ghana said government will target GH¢5.57 billion at the next Treasury bill auction.
With yields continuing to compress, attention will remain on whether investor demand can stay strong as returns on short-term government securities move lower.
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