Government has once again experienced an oversubscription in its primary T-bill auction, as demand surged 42.07 percent above target.
Latest data from the Bank of Ghana reveal that while the government aimed to raise GHS 3.86 billion, it accepted bids totaling GHS 5.48 billion.
The data showed that GHS 4.32 billion out of GHS 4.86 billion in bids for the 91-day bill were accepted. For the 182-day bill, GHS 823 million was taken from GHS 1.15 billion in bids, while the 364-day bill recorded GHS 343 million in accepted bids from a total of GHS 774 million.
Economic watchers attribute the sudden and sustained oversubscription to renewed institutional appetite for T-bills, as investors move to lock in current yields ahead of expected declines in interest and inflation rates.
Yields on short-term securities continue to fall. The 91-day yield dropped by 54 basis points to 10.29 percent, while the 182-day fell by 87 basis points to 12.35 percent from 13.22 percent. The 364-day yield also declined by 106 basis points to 13.24 percent.
Looking ahead, the government aims to raise GHS 8.58 billion at the next auction.
