Government breaks T-Bill undersubscription streak with GH¢5.97 billion raised

The government has successfully ended a three-week streak of treasury bill undersubscriptions in its latest auction, raising GH¢5.97 billion against a target of GH¢5.54 billion.

This represents an oversubscription of approximately GH¢420 million.

According to results published by the Bank of Ghana, the government accepted a total of GH¢5.97 billion against the GH¢5.54 billion target.

Out of GH¢4.95 billion in bids for the 91-day treasury bill, the government accepted GH¢4.58 billion.

For the 182-day bill, all GH¢890 million in bids were accepted while GH¢499 million was accepted for the 364-day bill out of GH¢698 million in bids.

Analysts believe the oversubscription largely reflects alignment between government issuance and market demand driven by end-of-month government spending.

As expectations of a bond market reopening gain traction, analysts anticipate continued selective acceptance of bids and modest yield compression.

The 91-day yield dropped by 18 basis points to 14.92%, down from 15.10% the previous week.

The 182-day rate declined by 13 basis points to 15.55% while the 364-day yield fell sharply by 78 basis points to 16.00%.

Looking ahead, the government plans to raise GH¢3.89 billion in the next auction.

SP/MA

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