The government recorded robust investor interest at its latest Treasury bill auction, with total bids rising to GH¢11.64 billion well above the GH¢6.22 billion target highlighting sustained demand for short-term securities.
Figures from the Bank of Ghana’s Tender 2019, held on August 7, 2026 and issued on August 10, showed that GH¢3.70 billion was tendered for the 91-day bill, GH¢1.91 billion for the 182-day bill, and GH¢6.02 billion for the 364-day bill.
In all, the government accepted GH¢9.42 billion, significantly exceeding its initial target.
The 364-day bill emerged as the most attractive instrument, accounting for just over half of total bids. Of the GH¢6.02 billion tendered, the government accepted GH¢5.86 billion, underlining strong investor preference for the longer-dated security.
Demand for the 91-day bill was also notable, with GH¢3.70 billion tendered and GH¢2.36 billion accepted. For the 182-day bill, GH¢1.91 billion was tendered, out of which GH¢1.19 billion was accepted.
Overall, total bids exceeded the government’s target by about 87.18 per cent, while accepted bids were approximately 51.49 per cent higher.
Mr Rockson Kemeh, a financial analyst commenting on the auction said “this suggests the Treasury took advantage of favourable market conditions to raise more funds than initially planned.”
The auction results, he said, also highlighted the yield structure across the different maturities.
The weighted average interest rate on the 91-day bill stood at 5.63 per cent, compared with 7.53 per cent for the 182-day bill and 12.99 per cent for the 364-day bill.
“The wide gap between the rates indicates that investors are willing to accept lower returns on shorter-term instruments, while demanding higher yields to commit funds for longer periods,” he said
He explained that shorter-dated securities offer greater liquidity and reduced exposure to inflation and monetary policy risks, while longer-term bills require investors to lock in funds for extended periods, hence the higher returns.
Bid ranges further showed investor positioning. The 91-day bill attracted bids between 5.43 per cent and 5.70 per cent, while the 182-day bill recorded bids between 7.22 per cent and 8.63 per cent.
The 364-day bill posted the widest range, with bids between 11.39 per cent and 12.00 per cent on a discount-rate basis.
From a funding perspective, the outcome is positive for the government. Strong demand allows the Treasury to meet its short-term financing needs without significantly raising interest rates.
The auction also comes at a time when short-term interest rates have declined markedly from the elevated levels seen during Ghana’s period of high inflation and fiscal pressures. Despite the lower yields, investor demand remains firm.
For instance, even with the 91-day bill yielding 5.63 per cent, investors still tendered GH¢3.70 billion.
The 364-day bill, however, continues to stand out, offering close to 13 per cent returns. This makes it particularly attractive to investors seeking higher yields within a relatively short investment horizon.
Compared with the previous auction, the latest results show sustained demand. Tender 2018, held on July 31, recorded total bids of GH¢10.51 billion and accepted bids of GH¢8.65 billion.
This represents a week-on-week increase of about 10.76 per cent in bids and 8.88 per cent in accepted amounts.
The government has, however, set a lower target of GH¢5.99 billion for the next auction, Tender 2020, suggesting it may not need to raise as much even if strong demand persists.
BY TIMES REPORTER
Follow our WhatsApp Channel now! https://whatsapp.com/channel/0029VbAjG7g3gvWajUAEX12Q
