T-Bill demand rebounds 32.9% as yields continue to decline

This marks a significant turnaround from the previous auction, which recorded an undersubscription of about 4%.

Data from the Bank of Ghana show that investors tendered a total of GHS3.66 billion across the 91-day, 182-day and 364-day Treasury bills, against a government target of GHS2.75 billion. This resulted in an oversubscription of GHS904.64 million.

The government accepted a total of GHS2.90 billion of the bids submitted, representing about 79.3% of total investor bids.

The 91-day Treasury bill attracted the largest volume of investor interest, with GHS2.08 billion tendered, of which the government accepted GHS1.88 billion.

The 182-day bill received GHS702.95 million in bids, with GHS520.57 million accepted, while investors tendered GHS876.72 million for the 364-day bill, of which GHS497.74 million was accepted.

The auction data also show that Treasury bill yields continued to decline across the curve. The 91-day yield fell by about 2 basis points to 4.67% from 4.69% the previous week. The 182-day yield declined by 11 basis points to 6.37% from 6.48%, while the 364-day yield dropped by 15 basis points to 9.83% from 9.98%.

Analysts attribute the oversubscription largely to a relatively softer government target, compared with the level of demand that continues to exist in the Treasury bill market.

For the next auction, the government is targeting GHS2.24 billion through the issuance of 91-day, 182-day and 364-day Treasury bills.