The Government of Ghana has successfully raised GH¢6.67 billion through its
latest treasury bills auction, slightly exceeding its set target, according to
the Bank of Ghana. The auction witnessed an oversubscription rate of 2.81 per cent, with the total amount raised surpassing the initial target by GH¢66.21
million.
Despite the success of the auction, bids totaling GH¢121.7 million were
turned down, signaling a selective acceptance strategy by the government in
managing its debt instruments. The results reveal a continued strong investor
interest in short-term government securities, with the 91-day treasury bill
attracting the highest volume of bids.
The 91-day bill accounted for GH¢5.7 billion of the total submissions,
representing 84.4 per cent of the entire amount tendered. Out of that, GH¢5.67
billion worth of bids were accepted by the government. For the 182-day bill,
all GH¢908 million in bids were taken up, indicating a solid level of
confidence among investors in the short-to-medium term instruments. The 364-day
bill also recorded a full acceptance of over GH¢187 million in bids.
In a positive development for the government’s cost of borrowing, yields
across all bill tenors declined slightly. The 91-day bill yield dropped by 20
basis points to 15.4 per cent. The 182-day bill saw a minor dip from 16.50 per cent to 16.21 per cent, while the 364-day bill decreased by 18 basis points
to 18.65 per cent.
The marginal drop in interest rates is likely to support the government’s
efforts in managing the cost of domestic debt while maintaining investor
interest. The auction’s outcome reflects growing market confidence in Ghana’s
fiscal direction, especially as authorities implement tighter financial
discipline and policies to stabilize the economy.
This result comes on the heels of recent auctions where the government had
missed its targets consecutively. The modest oversubscription in this round
could be seen as a turning point and a sign of improving investor sentiment.
The central bank's data continues to offer critical insights into how
government borrowing and interest rate trends are shaping Ghana's broader
economic landscape.
As the government proceeds with its borrowing calendar, the performance of
future auctions will be crucial in gauging ongoing investor appetite and the
sustainability of current yield trends.
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