Ghana: Treasury Bill Demand Surges As Bids Hit Gh¢11.64bn

What the report says

Ghana’s government drew strong investor demand at its latest Treasury bill auction, with bids reaching GH¢11.64 billion against a target of GH¢6.22 billion, according to reporting from Ghanaian Times distributed by AllAfrica. The auction was held by the Bank of Ghana under Tender 2019, with results issued on August 10 after the August 7 sale.

The article said the government accepted GH¢9.42 billion in bids across the 91-day, 182-day and 364-day bills. The 364-day security attracted the most interest, followed by the 91-day bill, while the 182-day bill drew the smallest share of bids. The report noted that the longer-dated bill also carried the highest accepted yield among the three maturities.

A financial analyst quoted in the piece said the outcome suggested the Treasury was able to raise more money than planned because market conditions were favorable. The article also linked the strong result to lower short-term interest rates compared with earlier periods of high inflation and fiscal pressure in Ghana.

More broadly, the report said the auction points to continued appetite for short-term government debt and gives the state flexibility in meeting near-term funding needs. It also compared the result with the previous week’s auction, which saw lower total bids and acceptance, and said the next Treasury bill sale was set with a lower financing target.