The government has rejected GHS 2.9 billion worth of Treasury bill bids after a 40.5% over-subscription at the last auction
Per the latest auction results from the Bank of Ghana, the Treasury initially aimed to raise GHS 7.3 billion but accepted GHS 7.7 billion slightly above the government’s target.
This was from total bids of GHS 10.6 billion tendered in by investors.
It means GHS 2.9 billion in offers were turned down, likely due to higher-than-expected interest rates from investors.
The 91-day bill attracted the highest demand, with bids reaching GHS 6.1 billion, of which GHS 3.9 billion was accepted.
The yield on the 91-day bill declined by 43 basis points to 27.98%.
The 182-day bill saw GHS 4.4 billion in bids, with GHS 3.8 billion accepted, while its yield dipped by 21 basis points to 28.68%.
Notably, the Treasury did not issue any 364-day bills in this auction.
The rejection in the bids could be part of the government’s strategy of rejecting expensive bids aligns with efforts to control borrowing costs and normalise the yield curve amid ongoing fiscal consolidation measures.
The decline in rates is further supported by easing inflation in January, ensuring that investors’ real returns remain unaffected.
Looking ahead, the Treasury plans to raise GHS 8 billion in the next T-bill auction, with expectations of sustained strong demand.
