Ghana’s Treasury recorded a strong rebound in investor confidence last week, marking its first oversubscription in two months during the primary Treasury bill auction.
According to data from the Bank of Ghana, total bids reached GHS 20.98 billion—an impressive 97.82 percent above the government’s target of GHS 5.44 billion. Of this, the Treasury accepted GHS 10.64 billion, comfortably covering both its target and the GHS 5.24 billion in upcoming maturities.
The surge in demand was driven primarily by renewed interest in short-term government securities following recent policy rate cuts by the Bank of Ghana.
Analysts attribute the shift to investors seeking relatively higher returns after the central bank slashed yields on its BoG Bills, previously pegged at 27 percent.
In comparison, Treasury bills still offer competitive yields, despite falling sharply—91-day yields declined by 93 basis points to 13.72 percent, 182-day dropped to 14.61 percent, and 364-day slid to 14.73 percent.
A breakdown of the auction shows that GHS 5.65 billion of GHS 13.77 billion in bids were accepted for the 91-day bill.
The 182-day bill saw GHS 2.99 billion taken from GHS 4.22 billion in bids, while GHS 2.00 billion was accepted for the 364-day bill out of GHS 2.98 billion tendered.
