Investor demand for Treasury bills has rebounded strongly, with bids at the latest primary market auction exceeding the government’s target by GH¢904.64 million.

The auction attracted total bids of GH¢3.66 billion across the 91-day, 182-day and 364-day Treasury bills, against a target of GH¢2.75 billion. The 32.9% oversubscription marks a reversal from the previous auction, which recorded an undersubscription of about 4%.

The government accepted GH¢2.90 billion of the bids submitted, representing about 79.3% of total investor demand. The 91-day bill accounted for the largest share, attracting GH¢2.08 billion in bids, of which GH¢1.88 billion was accepted.

The 182-day instrument received GH¢702.95 million in bids, with GH¢520.57 million accepted, while the 364-day bill attracted GH¢876.72 million, of which GH¢497.74 million was taken up by the government.

The latest auction also showed continued declines in Treasury bill yields across all three maturities. The 91-day yield fell by two basis points to 4.67%, from 4.69% the previous week, while the 182-day yield dropped 11 basis points to 6.37% from 6.48%. The 364-day yield recorded the largest decline, falling 15 basis points to 9.83% from 9.98%.

Analysts have attributed the stronger demand largely to the government’s relatively softer borrowing target, against continued investor appetite for short-term government securities.

For the next auction, the government is targeting GH¢2.24 billion through the issuance of 91-day, 182-day and 364-day Treasury bills.