Government’s Treasury bill auction has recorded its third straight oversubscription, signaling continued investor confidence in the domestic debt market.
In the latest auction held on December 19, 2025, government targeted a total of GHC3.792 billion across the 91-day, 182-day, and 364-day tenors.
Investor appetite significantly outpaced expectations, with total bids offered reaching GHC5.601 billion.
Despite the surge in interest, the government exercised a degree of fiscal restraint, accepting GHC5.382 billion, approximately 96% of the total bids offered.
This successful auction marks a pivotal moment in the government’s end-of-year borrowing strategy as it seeks to manage the national debt while maintaining liquidity.
The distribution of bids across the various maturities showed a strong preference for shorter-dated instruments, though all three tenors performed well:
For the 91-Day Bill investors offered GHC2.539 billion for the short-term paper, of which the government accepted GHC2.389 billion at a yield of 11.08 per cent.
The 182-Day Bill received offers totaling GHC1.523 billion, while government took GHC1.458 billion, with the interest rate settling at 12.43 per cent.
The 364-Day Bill showed the tightest margin between offers and acceptance; out of the GHC1.538 billion in bids received, government accepted GHC1.533 billion, at a yield of 12.91 per cent.
The sustained oversubscription indicates that liquidity remains ample within the banking sector, even as interest rates show signs of stabilisation.
Market analysts suggest that investors are locking in yields ahead of potential shifts in monetary policy as we enter the new year.
Looking ahead, government has set a slightly more modest target for its next auction, seeking to raise GHC3.306 billion to meet its immediate financing needs.
Source: 3Business
