Investor demand for Treasury bills remained strong at the latest primary market auction, with total bids significantly exceeding the government’s target.
The Bank of Ghana targeted GH¢5.147 billion across the 91-day, 182-day and 364-day Treasury bills for Tender 2022.
However, investors submitted total bids of GH¢12.35 billion, resulting in an oversubscription of 139.9%.
The Treasury ultimately accepted GH¢6.53 billion of the bids submitted.
A breakdown of the auction results shows that investor appetite was heavily concentrated in the one-year instrument, with the 364-day Treasury bill accounting for about 60.8% of total bids submitted.
The 364-day bill attracted GH¢7.50 billion in bids, of which GH¢2.75 billion was accepted, leaving nearly GH¢4.75 billion in bids unaccepted.
The 182-day bill received bids of GH¢1.2 billion. A little above GH¢935 million was accepted.
For the 91-day bill, GH¢3.5 billion of the bids were tendered with Government accepting GH¢2.8 billion of the bids.
Yields continued to ease across the Treasury bill curve, reflecting strong market liquidity and sustained investor appetite for government securities.
The yield on the 91-day bill fell by 13 basis points to 4.94%, from 5.07% at the previous auction.
Similarly, the 182-day bill yield declined by 23 basis points to 6.85%, from 7.07%.
The 364-day bill recorded the sharpest decline, with its yield falling by 82 basis points to 10.77%, from 11.59%.
Looking ahead, the government is seeking to raise GH¢6.554 billion through the issuance of 91-day, 182-day and 364-day Treasury bills at its next auction.
The latest auction results underscore continued strong demand for government securities, providing the Treasury with an opportunity to meet its borrowing requirements at lower yields amid elevated liquidity conditions in the market.
