Ghana’s Treasury bill market has extended its recovery streak, recording a second consecutive oversubscription after nearly two months of weak demand.
This signals the gradual strengthening of the rebound of investor appetite.
At the latest auction, the government sought to raise GH¢4.3 billion but received bids totaling GH¢5.798 billion, resulting in an oversubscription of GH¢1.498 billion. This represents 34.84% above target.
In a notable shift, government went on to accept GH¢5.475 billion, exceeding its original borrowing target by GH¢1.175 billion, reflecting a stronger need to secure funding amid improving but still selective market conditions.
The outcome suggests that fiscal authorities are now taking advantage of the renewed investor interest to mobilise additional financing, even if it means borrowing beyond initial projections.
Investor participation was broad-based across the curve, with the 91-day bill attracting GH¢3.8 billion, the 182-day instrument recording GH¢709 million, and the 364-day bill drawing GH¢1.3 billion. The distribution reflects continued dominance of short-term instruments, although longer-tenor appetite remains visible.
Interest rates, however, moved upward across all segments of the curve, signalling a cautious return of risk pricing.
The 91-day bill rose from 4.8832% to 4.9174%, while the 182-day bill edged slightly higher from 7.0384% to 7.0411%. The 364-day bill saw a more pronounced increase, climbing from 10.1302% to 10.3857%, suggesting investors are demanding higher returns for locking in funds over longer periods.
The back-to-back oversubscriptions point to a possible turning point in market sentiment after weeks of liquidity tightening and subdued participation.
Analysts suggest the rebound could be driven by improved liquidity conditions or renewed investor confidence in government securities following recent macroeconomic stability signals.
For government, the development offers short-term relief in financing operations, providing greater access to domestic funds at a time when fiscal pressures remain elevated. However, the decision to accept more than the target also highlights a balancing act between meeting funding needs and managing rising borrowing costs.
Overall, the latest auction reflects a market that is slowly regaining momentum, but one where investors remain sensitive to yield movements and macroeconomic signals.
