Latest data from the Bank of Ghana (BoG) shows that the Treasury rejected GHS 8.27 billion in bids at its latest auction, marking one of the largest rejections since March 2023.
Investors tendered GHS 17.70 billion against a target of GHS 8.07 billion, with GHS 9.43 billion accepted.
The 91-day bill saw bids of GHS 6.8 billion, with GHS 5.2 billion accepted, while the 182-day bill attracted GHS 4.5 billion, with GHS 1.4 billion accepted. The 364-day bill received GHS 6.2 billion in bids, with GHS 2.7 billion accepted.
The rejections triggered a sharp nose dive in yields, now ranging between 26% and 27% down from 28 to 30% recorded the previous week.
The 91-day and 182-day bills recorded a 1.3% and 1.07% decline in yields ending the auction with interest rates of 26.85% and 27.80% respectively.
The 364-day bill ended with an interest rate of 29.07%.
Market analysts with Databank believe these rejections reflects the Treasury’s yield control strategy to curb aggressive rate demands, and ease borrowing costs while guiding the yield curve towards normalisation.
Despite the rejections, government exceeded its target, indicating strong investor interest in treasury bills as a safer alternative on the market.
Looking ahead, the Treasury aims to raise GHS 7.7 billion in the next T-bill auction.