Ghana records seventh straight Treasury bill oversubscription as government curbs borrowing

The Government of Ghana has recorded its seventh consecutive Treasury bill oversubscription this year, highlighting strong investor confidence even as authorities maintain a cautious approach to borrowing.

At last Friday’s auction, total bids exceeded the government’s target of GH¢6.415 billion by 253.40 percent, reflecting a surge in demand for short-term government securities.

Despite the heavy inflows, the government accepted only GH¢8.99 billion across the 91-day, 182-day and 364-day instruments, rejecting more than GH¢13 billion out of total bids worth GH¢22.670 billion. This means roughly 40 percent of the offers were taken, a move seen as part of efforts to control debt accumulation.

The disciplined approach appears to be influencing the market, with yields declining across all tenors.

• The 91-day bill attracted GH¢7.640 billion in bids, with GH¢3.414 billion accepted at a yield of 8.61%.
• The 182-day bill recorded GH¢7.266 billion in offers, with GH¢2.088 billion accepted at 10.68%.
• The 364-day bill saw GH¢7.762 billion in bids, of which GH¢3.489 billion was taken at a yield of 9.96%.

Overall, the auction recorded a subscription rate of 353.40 percent and an oversubscription rate of 253.40 percent, reinforcing investor perception of Treasury bills as a safe investment option.

By turning away a large portion of bids, authorities are signalling fiscal discipline and a commitment to limiting borrowing despite strong market liquidity an approach that could further drive interest rates downward in the coming weeks.