Investors showed strong interest in T-bills at the latest government auction, with the 364 day bill attracting the most demand because it offered the highest return.

According to auction results from the Bank of Ghana, investors submitted GH¢10.7 billion in bids, while the government accepted GH¢9.4 billion. This was about 73% above the government’s target for the auction.

The 364 day Treasury bill was the most subscribed. Investors submitted a little over GH¢6.0 billion in bids, accounting for 55.8% of the total bids received. The government accepted about GH¢5.8 billion.

The 182 day bill attracted GH¢1.9 billion in bids, with a little over GH¢1.1 billion accepted.

For the 91 day bill, investors submitted GH¢6.0 billion in bids, while a little above GH¢5.8 billion was accepted.

Interest rates moved in different directions across the three Treasury bills.

The yield on the 91 day bill fell by 14 basis points to 5.62%.

The 182 day bill also recorded a lower yield of 7.52%, compared with 7.64% in the previous week.

The yield on the 364 day bill, however, moved slightly higher to almost 13.0%, making it the highest yielding Treasury bill among the three.

For someone new to Treasury bills, the yield is simply the return you earn for investing your money in the bill until it matures.

The strong demand for the 364 day bill shows that many investors were willing to keep their money invested for a longer period in return for the higher interest rate.