T-Bills Oversubscribed by 253% as Yields Decline

Investor interest in short-term government securities remains elevated, as fresh data from the Bank of Ghana points to another heavily subscribed Treasury bill auction.

At the latest sale, total bids reached GH¢22.67 billion, far exceeding the GH¢6.42 billion target and translating into a 253 percent oversubscription—marginally higher than the 246 percent recorded a week earlier.

Despite the strong demand, the government took up GH¢8.99 billion across the 91-day, 182-day and 364-day tenors.

For the 91-day instrument, authorities accepted GH¢3.41 billion out of GH¢7.64 billion tendered. The 182-day bill saw GH¢2.09 billion allotted from GH¢7.27 billion in bids, while GH¢3.49 billion was absorbed from GH¢7.76 billion offered for the 364-day paper.

Rates continued their downward trajectory amid abundant liquidity in the market. The yield on the 91-day bill fell sharply by 136 basis points to 8.60 percent, while the 182-day rate declined by 114 basis points to 10.67 percent. The 364-day instrument also dropped by 100 basis points to settle at 11.06 percent.

Market observers attribute the sustained decline in yields not only to excess liquidity but also to increasingly competitive bidding behaviour. With some bids rejected in earlier auctions, investors are said to be submitting lower rates to improve their chances of securing allocations, further compressing yields.

In the upcoming auction, the government aims to raise GH¢9.32 billion, underscoring its continued dependence on the domestic short-term debt market to finance budgetary needs.