T-Bill auction records 162.9% oversubscription as yields fall

Data from the Bank of Ghana show that investors tendered GH¢14.27 billion across the 91-day, 182-day and 364-day Treasury bill tenors, against a target of GH¢5.43 billion.

Despite the robust demand, the government accepted GH¢5.85 billion in bids, rejecting approximately GH¢8.41 billion worth of investor submissions.

The 364-day Treasury bill attracted the largest share of investor interest, with GH¢9.94 billion tendered. However, the Treasury accepted only GH¢2.69 billion of those bids.

The 91-day bill received GH¢3.12 billion in bids, with GH¢2.40 billion accepted, while the 182-day bill attracted GH¢1.20 billion, of which GH¢766.21 million was accepted.

The strong liquidity in the market also drove further yield compression across the Treasury bill curve. The yield on the 91-day bill declined by 39 basis points to 5.07%, from 5.46% at the previous auction.

Similarly, the 182-day bill yield fell by 19 basis points to 7.07%, compared with 7.27% previously.

The 364-day bill recorded the sharpest decline, with its yield dropping by 91 basis points to 11.59%, from 12.50% at the preceding auction.

Market analysts attribute the strong rebound in liquidity to recent Domestic Debt Exchange Programme (DDEP) coupon payments, which have injected additional liquidity into the financial system and strengthened the Treasury’s ability to borrow at lower yields amid heightened investor demand.

Looking ahead, the government is seeking to raise GH¢5.15 billion through the issuance of 91-day, 182-day and 364-day Treasury bills at its next primary market auction.