After six weeks of subdued activity, investor confidence returned strongly to the treasury market this week.
Data from the Bank of Ghana shows that treasury bills were oversubscribed by 110.84%, reflecting renewed demand for short-term government securities. Investors submitted GH¢6.03 billion in bids across the 91-, 182-, and 364-day bills, with the Treasury accepting GH¢5.78 billion—nearly double its GH¢2.86 billion target.
A breakdown of the auction results shows the 91-day bill led demand, attracting GH¢2.57 billion in bids and accepting GH¢2.56 billion. The 182-day bill followed with GH¢1.64 billion tendered and GH¢1.62 billion accepted, while the 364-day bill drew GH¢1.81 billion, with GH¢1.58 billion accepted.
What drove the turnaround?
A low issuance target played a role, but the primary factor was renewed bank participation following the 350 basis point policy rate cut to 18%, which reduced returns on the Bank of Ghana’s 56-day bill and redirected liquidity into treasury bills.
Yields eased slightly across most maturities. The 91-day bill fell 8 basis points to 11.05% from 11.13% the previous week, the 182-day bill declined 25 basis points to 12.43%, while the 364-day bill edged up 2 basis points to 13.08%.
Looking ahead, the Treasury plans to raise GH¢5.80 billion in its next auction across the three tenures.
