Ghana’s government has witnessed a remarkable surge in investor interest in its treasury bills, with total bids tendered exceeding the target by a staggering 144%. According to auction results released by the Bank of Ghana, the government received bids worth GH¢17.10 billion, significantly surpassing its target of GH¢6.99 billion. The Bank of Ghana ultimately accepted GH¢12.3 billion of the bids.
The 364-day bill attracted the majority of the bids, with GH¢6.54 billion tendered, representing 38.2% of the total bids. The government accepted GH¢5.9 billion of these bids. The 91-day bill saw GH¢5.9 billion in bids, with GH¢2.7 billion accepted, while the 182-day bill attracted GH¢4.6 billion in bids, with GH¢3.5 billion accepted.
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The interest rates on the treasury bills fell across the yield curve, driven by the 250 basis points cut in the policy rate by the Bank of Ghana. The yield on the 91-day bill dropped by 37 basis points to 10.82%, while that of the 182-day bill declined to 12.38% from 12.66%. The yield on the 364-day bill eased by 24 basis points to 12.82%.
Auction Results:
The strong demand for government securities reflects investors’ confidence in the government’s economic management and the attractive yields on offer. The reduction in interest rates is expected to provide relief to borrowers and stimulate economic growth.
