Treasury bill demand beats target after a weaker round, but bid totals differ between reports

Pinned summary · as of 05:29

Investors offered more money than the government sought at the most recent Treasury bill sale, a turnaround from the round before, when bids came in roughly 4% short. Reports agree that the 91-day bill drew the most interest and that returns on the longer maturities eased, though they give different totals for bids and for the amount the government took.

What we know

• The latest Treasury bill sale drew bids above what the government was aiming to raise, reversing the shortfall recorded in the round before it.
• The earlier round fell about 4% short of its goal, with investors offering roughly GH₵3.96 billion against a GH₵4.121 billion target.
• The 91-day bill attracted the biggest share of demand, with bids of about GH₵2.08 billion, and the government took up roughly GH₵1.88 billion of them.
• Returns fell on the longer-dated paper: the 182-day yield moved to 6.37% from 6.48%, and the 364-day yield to 9.83% from 9.98%, drops of 11 and 15 basis points.
• The 182-day bill drew GH₵702.95 million in offers and the government took GH₵520.57 million; the 364-day bill drew GH₵876.72 million, with GH₵497.74 million taken.
• Analysts told Citi Newsroom and The Ghana Report that demand looked strong mainly because the government had set a comparatively modest target for the sale.
• The government has set a goal of GH₵2.24 billion for the following sale, spread over three maturities: 91, 182 and 364 days.

What's disputed / unconfirmed

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  Reports disagree on total demand. Citi Newsroom and MyJoyOnline put bids at GH₵3.66 billion against a GH₵2.75 billion goal, an excess of GH₵904.64 million or 32.9%, while The Vaultz News reported about GH₵2.9 billion in bids and an excess of 7.5%. The Ghana Report carried both versions.
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  The amount the government accepted is also reported differently: Citi Newsroom, MyJoyOnline and The Ghana Report gave GH₵2.90 billion, about 79.3% of bids, while The Vaultz News and an earlier Ghana Report item gave about GH₵2.8 billion.
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  On the 91-day bill, Citi Newsroom, MyJoyOnline and The Ghana Report reported a small dip to 4.67% from 4.69%, whereas The Vaultz News and an earlier Ghana Report item said the yield stayed at 4.69%.
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  Onua Online gave 10.98% as the 364-day yield at the earlier round, while The Vaultz News gave 9.98%, the level the later reports use as the starting point for the latest drop.
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  Financial market expert Gifty Annor-Sika Asantewah told The Vaultz News that a single round does not set a trend and that the coming sales will show whether the earlier shortfall was a brief adjustment; no other report carried her view.

Why it matters for Ghana

Treasury bill yields act as a reference for what banks, pension funds and individual savers can earn on short-term lending to government. Lower returns on the 182-day and 364-day paper mean investors weigh how long to tie up their money against what they are paid. Because the reports disagree on the size of the latest sale, readers tracking government borrowing should treat the precise totals with care until official figures are clear.