Ghana’s latest Treasury bill auction has recorded its first oversubscription in two months, as investor interest surged significantly, reflecting renewed confidence in the country’s short-term government securities.
According to data released by the Bank of Ghana, total bids submitted reached GH¢20.98 billion—nearly double the government’s target of GH¢5.44 billion. The Treasury accepted GH¢10.64 billion, covering both its target and an upcoming maturity of GH¢5.24 billion.
The oversubscription, which marks a 97.82% increase above the target, follows weeks of muted participation in the Treasury bill market.
Analysts say the sharp rise in demand can be linked to the Bank of Ghana’s recent decision to scale back its policy tool, the BoG Bills, which had previously offered yields of around 27%. With the central bank’s rate cut, investors are now channelling their funds into Treasury bills, which still provide relatively favourable returns.
Despite the strong interest, yields on the short-term instruments have continued to decline. The 91-day bill dropped by 93 basis points to 13.72%, the 182-day fell by 41 basis points to 14.61%, and the 364-day bill declined by 68 basis points to 14.73%.
A breakdown of the auction results shows GH¢5.65 billion accepted out of GH¢13.77 billion in bids for the 91-day bill. For the 182-day bill, GH¢2.99 billion was accepted out of GH¢4.22 billion, while the 364-day instrument saw GH¢2 billion accepted from GH¢2.98 billion in tenders.
The results are being seen by financial observers as a positive sign of market resilience and investor appetite, despite falling yields.
