The Government of Ghana has raised GH¢9.98 billion from its latest Treasury bill auction after attracting bids worth GH¢12.70 billion, reflecting strong investor confidence despite a lower interest rate environment.
According to the results of Tender 2016, conducted on July 17 for settlement on July 20, the auction significantly exceeded the government’s target of GH¢7.36 billion. Total bids came in GH¢5.34 billion above the target, representing an oversubscription of 72.51%.
Out of the GH¢12.70 billion submitted by investors, the Treasury accepted GH¢9.98 billion and rejected GH¢2.72 billion, resulting in an acceptance rate of 78.57%.
The 364-day Treasury bill attracted the highest level of interest, receiving GH¢8.31 billion in bids. The government accepted GH¢6.35 billion of that amount, making the one-year instrument the dominant security in the auction. It accounted for more than 65% of all bids received and nearly 64% of the total amount accepted.
The 91-day bill recorded bids of GH¢3.51 billion, with GH¢3.04 billion accepted. Meanwhile, the 182-day bill attracted the least interest, receiving GH¢873.97 million in bids, of which GH¢584.98 million was accepted.
The strong demand for the 364-day bill suggests that investors continue to favour longer-dated Treasury securities, likely to lock in yields for an extended period and reduce reinvestment risk. For the government, the trend provides an opportunity to extend the maturity profile of its short-term domestic borrowing.
Interest rates on the 91-day bill remained relatively stable. Successful bids ranged between 5.62% and 5.78% on a discount basis, while interest rates ranged from 5.70% to 5.87%. The weighted average discount rate settled at 5.70%, with the weighted average interest rate coming in at 5.79%.
