T-bills Auction: Government Records 75% Oversubscription, Interest Rates Decline Further

Ghana’s government has achieved a 75% oversubscription in its latest treasury bill auction, raking in a total of GH¢6.78 billion in bids, signalling strong investor confidence despite a downward trend in interest rates.

According to auction results released over the weekend, the government accepted GH¢5.48 billion of the total bids submitted, surpassing its target significantly. The bulk of the interest came from the 91-day bill, which attracted GH¢4.8 billion—representing 71% of the total bids—with an eventual uptake of GH¢4.32 billion.

The 182-day bill also saw solid interest, with investors tendering GH¢1.156 billion. Of this, the government accepted GH¢823.28 million.

The 364-day bill, however, recorded a more modest response. While GH¢774.65 million was tendered, only GH¢343 million was taken up.

This robust subscription came even as yields declined across the board. The rate on the 91-day bill dropped by 54 basis points to 10.29%, while the 182-day bill saw a dip from 13.22% to 12.35%. The 364-day bill experienced the steepest fall, plunging by 1,006 basis points to settle at 13.24%.

Analysts interpret the results as a strong vote of confidence in Ghana’s short-term fiscal instruments, fuelled by improving macroeconomic indicators, renewed investor interest, and a relatively stable cedi.

The auction results are expected to provide a short-term liquidity boost for the government as it continues to navigate post-restructuring fiscal recovery and implements reforms under the IMF-supported program.

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