Investor appetite for government securities remained robust for the fifth consecutive week, with the latest Bank of Ghana data showing Treasury bills oversubscribed by 18.48 percent.
At the most recent auction, investors submitted bids totaling GH¢3.91 billion across the 91-day, 182-day and 364-day Treasury bills, well above the government's target of GH¢3.30 billion. Of the total amount tendered, GH¢3.85 billion was accepted.
The 91-day Treasury bill continued to dominate investor interest, attracting bids worth GH¢2.4 billion. Government accepted the full amount offered under this tenor.
Demand for the 182-day bill stood at GH¢781 million, with GH¢726 million accepted, while the 364-day bill recorded bids of GH¢686 million, all of which were taken up.
Market analysts attribute the sustained oversubscription to renewed participation by banks and an improved maturity profile, factors that have combined to strengthen demand for short term government instruments.
Interest rates recorded marginal increases across all tenors, reflecting continued strong demand at the auction. The yield on the 91-day bill edged up by 1 basis point to 11.09 percent. The 182-day bill rose to 12.52 percent from 12.43 percent at the previous auction, while the 364-day bill increased by 3 basis points to 12.94 percent.
At the next auction, the Treasury is seeking to raise GH¢3.99 billion through the three short term instruments, as it continues to test investor confidence in the market.