BOG: Treasury Bills oversubscribed for first time in 2 months

Ghana’s Treasury market saw a resurgence last week as the government’s latest T-bill auction was oversubscribed for the first time in two months, according to the Bank of Ghana (BOG).

Data released by the central bank on July 14 showed that investor bids totaled GH₵20.98 billion—nearly double the government’s target of GH₵5.44 billion, representing a 97.82 per cent oversubscription. 

The Treasury ultimately accepted GH₵10.64 billion in bids, enough to cover both its target and the upcoming maturities of GH₵5.24 billion.

It said the strong turnout signals renewed investor confidence in short-term government securities after several weeks of sluggish demand in the T-bill market.

Breaking down the results:

91-day bill: GH₵5.65 billion accepted from GH₵13.77 billion in bids
182-day bill: GH₵2.99 billion accepted from GH₵4.22 billion in bids
364-day bill: GH₵2.00 billion accepted from GH₵2.98 billion in bids

Analysts attribute the shift in investor sentiment to the search for relatively higher returns after the Bank of Ghana slashed yields on its own BoG Bills, which were previously pegged at 27 percent.

The recent surge in demand for Treasury bills is largely driven by renewed interest in short-term government securities, following the central bank’s policy rate cuts.

Despite a sharp decline, T-bills continue to offer competitive yields. Auction results show that:

GH₵5.65 billion of GH₵13.77 billion in bids were accepted for the 91-day bill
GH₵2.99 billion of GH₵4.22 billion for the 182-day bill
GH₵2.00 billion of GH₵2.98 billion for the 364-day bill