100% bid acceptance rate signals investor confidence in Ghanaian securities

In a resounding display of investor confidence, the Treasury’s recent auction surpassed anticipated figures, mobilizing GHS 4.82 billion against a programmed target of GHS 4.28 billion.

This remarkable achievement marks a surplus of GHS 544 million, showcasing the robust demand for government securities.

With a striking 100% acceptance rate for bids tendered by primary dealers, the Treasury has demonstrated unwavering market appeal, despite prevailing economic uncertainties.

The oversubscription rate, standing at 12.6% above the initial target, underscores investor eagerness to engage with Ghana’s financial instruments.

The 91-Day Bill emerged as the preferred choice among investors, followed closely by the 364-Day and 182-Day Bills, reflecting varied investment preferences across tenors.

Post-auction analysis reveals a notable decline in yields across the board. The 91-Day and 182-Day Bills settled at 26.74% and 29.24%, respectively, each witnessing a 25 basis point decrease from preceding rates.

Similarly, the 364-Day Bill experienced a yield decline to 29.84%, echoing market dynamics favoring reduced borrowing costs.

Looking forward, the Treasury aims to raise GHS 3.89 billion in the upcoming auction, signaling proactive measures to address impending maturities and sustain fiscal liquidity.

Despite economic headwinds, Ghana’s debt market continues to attract robust investor interest, underscoring resilience in the face of economic challenges.

As the Treasury navigates future funding requirements, market participants remain poised to seize opportunities amidst evolving yield dynamics.

Source:norvanreports