Investor appetite for Treasury bills remained strong last week, with bids significantly exceeding the government’s financing target despite the rejection of a sizeable portion of the offers.

According to auction results released by the Bank of Ghana, investors submitted bids worth GH¢10.51 billion across the 91-day, 182-day and 364-day Treasury bill instruments.

Out of the total amount tendered, the government accepted GH¢8.65 billion, rejecting bids valued at nearly GH¢1.86 billion.

The auction surpassed the government’s target of GH¢5.87 billion by about 79.2 per cent, underscoring sustained investor confidence in short-term government securities.

The 364-day Treasury bill attracted the highest level of interest, with investors bidding GH¢7.47 billion, of which GH¢7.18 billion was accepted.

The 91-day bill received bids amounting to GH¢2.27 billion, but the government accepted only GH¢972.94 million.

For the 182-day instrument, investors tendered GH¢757.93 million, while GH¢501.38 million was accepted.

Yields were mixed across the three instruments. The yield on the 91-day bill declined by two basis points to 5.76 per cent, down from 5.78 per cent at the previous auction.

Similarly, the 182-day bill recorded a four-basis-point decline, with its yield falling to 7.64 per cent from 7.68 per cent.

However, the yield on the 364-day bill edged up by two basis points to 12.98 per cent, compared with 12.96 per cent in the previous auction.

The latest results reinforce market analysts’ expectations that strong liquidity conditions and the attractiveness of risk-free government securities continue to drive robust demand, particularly for the longer-dated 364-day Treasury bill.

For the next auction, the government is seeking to raise GH¢6.22 billion through the issuance of the 91-day, 182-day and 364-day Treasury bills.