BoG T-bills auction draws strong investor demand despite rising yields

The Bank of Ghana's latest treasury bills auction attracted significant investor interest, with bids totalling over GH¢4 billion against a government target of GH¢3.37 billion — representing 23.4% oversubscription. However, the central bank accepted approximately GH¢3.1 billion of the total bids received.

The 364-day bill remained the most popular instrument, drawing GH¢1.85 billion in bids (44.5% of total subscriptions), though only GH¢1.09 billion was accepted. The 182-day bill attracted GH¢618.90 million in bids with GH¢435 million accepted, while the 91-day bill received GH¢1.68 billion in bids, of which GH¢1.63 billion was taken up by the BoG.

Interest rates across the yield curve continued their upward trajectory. The 91-day bill yield climbed 14 basis points to 5.87%, whilst the 182-day yield rose to 7.78% from 7.69% the previous week. Most significantly, the 364-day bill yield surged by 10 basis points to 12.92%, reflecting investors' demand for higher compensation on longer-term investments.