The National Democratic Congress government’s short-term borrowing programme continues to attract strong investor interest, with the latest treasury b
The National Democratic Congress government’s short-term borrowing programme continues to attract strong investor interest, with the latest treasury bills auction recording a fourth consecutive oversubscription, underlining renewed confidence in the money market and improving liquidity conditions.
At the most recent weekly auction, the government set out to raise GH¢3.7 billion through the issuance of 91-day, 182-day and 364-day treasury bills.
However, investor appetite far exceeded expectations, as total bids climbed to GH¢5.6 billion, representing an oversubscription rate of nearly 48 per cent.
Out of the amount tendered, the government accepted GH¢5.3 billion, signalling a willingness to take advantage of favourable market conditions.
A closer look at the auction results shows that the 91-day bill remained the most attractive to investors.
It accounted for just over 45 per cent of total bids, with GH¢2.5 billion submitted.
The government accepted GH¢2.3 billion of these bids, reflecting strong short-term positioning by investors seeking liquidity and relatively lower risk.
Demand was also solid for the medium-term 182-day bill. Investors tendered GH¢1.52 billion, of which approximately GH¢1.45 billion was accepted.
The 364-day bill similarly saw robust interest, with GH¢1.538 billion in bids. Nearly the entire amount was taken up, as the government accepted GH¢1.533 billion.
Beyond the strong subscription levels, the auction was marked by a notable decline in interest rates across all tenors.
The yield on the 91-day bill dropped by three basis points to 11.08 per cent. The 182-day bill also eased, falling to 12.43 per cent from 12.54 per cent recorded in the previous week.
The sharpest movement was seen on the 364-day bill, where yields declined by 17 basis points to settle at 12.91 per cent.
Market analysts say the sustained oversubscription and falling yields reflect easing borrowing costs and improved liquidity within the financial system.
This trend is being supported by rising investor confidence, anchored on expectations of continued macroeconomic stability and tighter fiscal discipline.
In recent months, treasury bills have consistently attracted strong demand as investors rebalance portfolios following earlier debt restructuring measures and signs of stabilisation in inflation, exchange rates and fiscal management.
The fourth consecutive oversubscription suggests that confidence in government securities is steadily rebuilding, offering the state relatively cheaper access to short-term financing while reinforcing positive sentiment in the broader financial market.
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