The Government successfully raised GH¢5.52 billion in its latest Treasury Bill auction on Friday, surpassing its GH¢5.4 billion target.
This represents an oversubscription rate of 2.37% or GH¢128 million, marking the first oversubscription since July following eight consecutive weeks of undersubscription.
The oversubscription in the Treasury’s latest auction can be attributed to the rising yields in short-term debt instruments.
Yields across all Treasury Bill tenors edged up, with the 91-day bill rising by 0.01% to 24.91%, the 182-day bill increasing by 0.02% to 26.80%, and the 364-day bill seeing the most significant uptick of 0.16% to 28.07%. The modest rise in yields likely contributed to the stronger demand.
Investor interest was heavily skewed towards the 91-day bill, which accounted for GH¢4.68 billion in bids, while the 182-day bill received GH¢594 million in bids, and the 364-day bill lagged behind with GH¢245 million.
Looking forward, the government aims to raise GH¢5.88 billion in its next Treasury Bill issuance, again focusing on the 91-day, 182-day, and 364-day maturities, seeking to capitalize on continued investor interest.
