Investor appetite for Government of Ghana Treasury bills (T-bill) surged in the latest auction, with bids amounting to a staggering GH₵20.9 billion—almost four times the GH₵5.4 billion target set by the government.
Data from the auction, held last Friday, showed that out of the total bids submitted by primary dealers, the government accepted GH₵10.64 billion, representing roughly 50% of the total amount tendered.
91-Day bill in high demand despite rate cut
The 91-day Treasury bill led the charge, attracting GH₵13.7 billion in investor bids. However, the government took up only GH₵5.6 billion of the amount.
This overwhelming demand came even as the yield on the short-term instrument dropped significantly to 13.72%, from 14.65% recorded in the previous auction.
For the 182-day and 364-day bills, investor bids reached GH₵4.2 billion and GH₵2.9 billion, respectively.
The government accepted GH₵2.9 billion for the half-year paper and GH₵2 billion for the one-year bill.
The yields on both instruments also fell slightly.
The 182-day bill dropped to 14.6% from 15.02%, while the 364-day paper dipped to 14.7% from 15.41%.
Declining BoG bill rates
Market analysts say the sharp decline in yields on the Bank of Ghana’s own monetary policy instrument—the BoG Bills—is largely responsible for the renewed investor interest in government-issued Treasury bills. Until recently, BoG Bills offered as much as 27%, drawing significant investor attention away from government securities.
However, recent policy adjustments have seen BoG Bill rates slashed significantly, making Treasury bills a relatively more attractive option for short-term investment.
“Investors are simply chasing yield, and with the BoG Bills no longer delivering the eye-watering returns they used to, Treasury bills are now the next best alternative,” one market watcher said.
Govt eyes GH₵7.7bn in next auction
As investor interest remains robust, the government is set to return to the domestic market on Friday, July 25, with a new target of GH₵7.7 billion.
The funds will be used to refinance maturing bills and support short-term budgetary operations.
Analysts expect the demand momentum to continue, especially as inflation stabilises and interest rates gradually trend downward.
However, yields may continue to face pressure in the coming weeks if the government remains conservative in the volumes it accepts.
