Ghana treasury bills oversubscribed by 51% as yields decline

Ghana's latest treasury bills auction saw significant oversubscription, with investors offering GH¢9.94 billion against a government target of GH¢6.55 billion. This represents a 51.6% oversubscription rate, signaling strengthening confidence in the country's domestic borrowing market.

The government accepted approximately GH¢8.38 billion of the total bids. A notable shift occurred in investor preference, as the 91-day bill attracted GH¢6.23 billion in bids, accounting for over 62% of the total, marking its dominance for the first time in several months.

Interest rates fell across all three tenors during the auction. The 91-day bill rate dropped from 4.9460% to 4.8050%, the 182-day bill rate fell from 6.8587% to 6.6831%, and the 364-day bill rate saw a sharper decline from 10.7778% to 10.1169%. The high demand despite falling yields suggests abundant liquidity and a willingness by investors to prioritize safety and liquidity in government securities.