The Government of Ghana exceeded its treasury bills target in the latest auction, reversing two consecutive weeks of undersubscription as investor demand strengthened.

Results released by the Bank of Ghana showed that investors submitted bids worth GHS6.09 billion, representing an oversubscription of 11.9% compared to the government's target of GHS5.44 billion. Out of the total bids received, the government accepted GHS5.83 billion.

The strong demand indicates renewed investor interest in short-term government securities despite recent fluctuations in the market.

The 91-day treasury bill remained the most attractive instrument to investors, accounting for 58.4% of the total bids submitted. A total of GHS3.56 billion was tendered for the security, with GHS3.50 billion accepted.

The 182-day bill also recorded significant interest, attracting bids worth GHS1.71 billion, of which GHS1.68 billion was accepted.

Meanwhile, the 364-day bill received bids totaling GHS815.57 million, with the government accepting GHS640.25 million.

Despite the strong demand, interest rates moved higher across most of the yield curve. The yield on the 91-day bill edged down slightly by 2 basis points to 5.01%.

However, yields on the longer-dated securities increased. The 182-day bill rose to 7.09% from 7.04%, while the 364-day bill recorded the sharpest increase, climbing by 38 basis points to 10.83%.

Market analysts say the increase in yields on longer-term instruments suggests investors are seeking higher returns amid evolving economic conditions, even as demand for government securities remains robust.

Treasury Bills Auction Summary

Security Bids Tendered (GHS) Bids Accepted (GHS)
91-Day Bill 3.56 billion 3.50 billion
182-Day Bill 1.71 billion 1.68 billion
364-Day Bill 815.57 million 640.25 million
Total 6.09 billion 5.83 billion
Government Target 5.44 billion —