T-Bill Demand Surges: Gov’t Raises GH¢7.26bn, Exceeds Target

The Government of Ghana has surpassed its Treasury bill target by an impressive GH¢550 million, according to the latest auction figures released by the Bank of Ghana.

This marks a positive sign of investor confidence in the country’s short-term debt instruments.

The government had set out to raise GH¢6.14 billion in the recent auction, but total bids submitted soared to GH¢7.26 billion, indicating high demand. However, not all bids were accepted. The government turned down GH¢570.64 million worth of offers, citing pricing and strategic reasons.

Breaking down the results, the 91-day Treasury bill continued to dominate interest. It received GH¢5.32 billion in bids, with GH¢5.21 billion accepted.

The 182-day bill attracted GH¢1.56 billion in bids, of which GH¢1.29 billion were taken up. Meanwhile, for the 364-day bill, only GH¢192 million out of GH¢381 million in bids was accepted.

Interest rates saw modest declines across all maturities, reflecting the government’s ongoing efforts to reduce borrowing costs.

The average yield for the 91-day bill dipped slightly to 15.32%, down from 15.45% the previous week. Similarly, the 182-day bill yield dropped to 16.03% from 16.18%, and the 364-day bill saw its rate fall to 18.37%, compared to 18.62% previously.

Analysts say the consistent oversubscription is a strong indication that investors still see government securities as a safe and appealing investment, even as yields decline.

The trend also suggests that the government’s fiscal policies and debt management strategies may be boosting market confidence.

Treasury bills are short-term government securities typically issued to meet cash flow needs or refinance existing debts.

They are considered low-risk investments and offer fixed returns over specified periods — usually 91, 182, or 364 days.

The reduction in yields, while positive for government borrowing costs, means investors will earn slightly less. Still, many continue to view T-bills as a safer alternative in uncertain economic times.

Looking ahead, the Treasury plans to raise GH¢6.32 billion in its next auction. Market watchers will be keen to see whether the high investor appetite continues and whether interest rates will remain on a downward trend.

For now, the oversubscription and strong participation signal a vote of confidence in Ghana’s economic direction — at least from the perspective of short-term investors.