The Government of Ghana has recorded strong investor demand for Treasury bills for the second auction, with total bids exceeding the target by GH¢1.17 billion.

According to auction results released by the Bank of Ghana, investors submitted bids worth GH¢5.80 billion against a target of GH¢4.30 billion, representing an oversubscription of 34.8%.

The government, however, accepted GH¢5.48 billion, rejecting some bids in what analysts say reflects efforts to maintain pricing discipline by turning down relatively expensive offers.

The 91-day Treasury bill attracted the highest investor interest, recording GH¢3.83 billion in bids, of which GH¢3.65 billion was accepted.

Tarkwa Mine: Gold Fields Ghana to facilitate Mahama-South African President meeting

The 182-day bill received GH¢709.83 million in bids, with GH¢671.72 million accepted, while the 364-day bill recorded GH¢1.26 billion in bids, of which GH¢1.15 billion was accepted.

The strong appetite for short-term instruments was partly driven by the recent bearish performance of the equity market, pushing investors towards safer government securities.

The Bank of Ghana also noted that the relatively lower auction target may have contributed to the strong subscription levels.

Yields on Treasury bills, however, continued to rise across all tenors. The 91-day bill increased by 3 basis points to 4.91%, while the 182-day bill rose marginally to 7.04% from 7.03% the previous week.

The 364-day bill climbed by 25 basis points to 10.38% from 10.13%.

The Treasury has indicated it is targeting approximately GH¢4.49 billion in the next auction as investors position themselves ahead of the Monetary Policy Committee (MPC) decision.

Despite strong demand, rising yields suggest investors continue to price in inflation risks ahead of the upcoming MPC meeting.

SO/MA

'Konica printers offer affordable cost per print' – Richard Gyimah