Last week’s Treasury bill auction, the final primary market sale for October, closed with a 4% oversubscription.

This comes as total bids reached GHS 2.55 billion against a target of GHS 2.45 billion.

Recent data from the Bank of Ghana shows that the total value of bids tendered fell by about 40% compared with the previous week, pointing to a significant moderation in investor demand.

In line with the Treasury’s selective acceptance strategy, the government accepted GHS 1.92 billion, representing about 78% of its target.

The 91-day bill continued to attract the highest investor interest, with bids amounting to GHS 1.51 billion, of which GHS 1.23 billion was accepted.

For the 182-day bill, investors tendered GHS 423.74 million, with the Treasury accepting GHS 395.74 million.

Meanwhile, the 364-day bill attracted GHS 613.83 million in bids, of which GHS 292.12 million was accepted.

Cumulatively, bids submitted across the primary market auctions in October reached GHS 19.97 billion, against a total target of GHS 16.27 billion. The Treasury accepted GHS 14.97 billion over the period.

This means the government rejected approximately GHS 5 billion in investor offers, while its total acceptances fell about GHS 1.3 billion short of the cumulative target.

The Treasury’s selective acceptance approach has also kept yields below the 5% to 10% range.

The 91-day bill yield declined by one basis point to 4.60%, while the 182-day and 364-day yields fell by four and seven basis points to 6.26% and 9.60%, respectively.

For the next auction, the government is targeting GHS 3.54 billion through the issuance of 91-day, 182-day and 364-day Treasury bills.