By: Benjamin Nii Nai Anyetei
Investor confidence in Ghana’s short-term securities market remained strong last week, as Treasury bills were oversubscribed by more than 14 percent despite easing yields.
According to the latest auction results released by the Bank of Ghana, government targeted GH¢3.01 billion but received total bids worth GH¢3.43 billion, accepting all. The oversubscription highlights sustained appetite for safe, short-term investments among investors.
The 91-day bill continued to dominate the market, recording the highest inflows with GH¢2.57 billion accepted out of GH¢2.58 billion tendered. The 182-day note followed, with GH¢608 million out of GH¢613 million bids taken. The 364-day bill also saw strong demand, with GH¢247 million accepted against GH¢250 million tendered.
Market analysts point to three key drivers: steady investor demand, improved uptake by the Treasury compared to previous weeks, and a relatively modest issuance target that boosted subscription rates.
At the same time, yields across all maturities dropped. The 91-day bill declined by 7 basis points to 10.45 percent, the 182-day fell by 8 basis points to 12.36 percent, while the 364-day slipped by 7 basis points to 12.88 percent. This downward trend reflects the government’s improved cash flow position and a stabilizing macroeconomic environment, which has helped ease pressure on borrowing costs.
Looking ahead, government plans to raise GH¢5.58 billion in the upcoming auction, a significant jump from last week’s target. Analysts caution that while investor demand remains healthy, the higher target will test market liquidity and could influence yields in the weeks ahead.
