Following Fitch’s upgrade of Ghana’s credit rating to B- with a stable outlook, investor confidence strengthened as the government’s treasury bill auction recorded its first oversubscription in two months.
According to auction results released by the Bank of Ghana, total bids for the short-term instruments reached GH¢7.8 billion about 80% above the government’s target.
Out of this amount, a little over GH¢6 billion was accepted.
The strong investor demand came shortly after Fitch improved Ghana’s credit profile, signaling renewed confidence in the economy.
The 91-day treasury bill attracted the highest interest from investors, receiving GH¢5.7 billion in bids, which accounted for 73% of all submissions. Of this amount, GH¢4.3 billion was accepted.
The 364-day bill recorded bids of about GH¢1.4 billion, with just over GH¢1.1 billion accepted.
Meanwhile, the 182-day bill received GH¢655.12 million in bids, out of which about GH¢571 million was accepted.
Interest rates on the yield curve showed mixed movements during the auction period.
- The yield on the 91-day bill declined by 4 basis points to 4.88%.
- The 182-day bill yield rose slightly to 7.03% from 6.97% the previous week.
- The 364-day bill yield fell by 6 basis points to 10.13%.
