Gambiaj.com – (BANJUL, The Gambia) – The Central Bank of The Gambia has reported strong investor demand in its latest auctions for 182-day and 364-day Treasury bills, with applications exceeding the amounts offered for both maturities.
According to the auction results published by the central bank, government securities issued for the one-year maturity attracted bids amounting to D1.046 billion, significantly surpassing the D600 million initially floated.
Out of the total bids received, the bank accepted D600 million, leaving D446.73 million in excess demand.
The weighted average price for the 364-day Treasury bills stood at 86.79, translating into an annual yield of 15.26 percent. The lowest bid price recorded during the auction was 86.24, while the highest bid price reached 88.00, reflecting robust market interest in longer-term government securities.
Similarly, the 182-day Treasury bill auction also drew strong participation from investors. The Central Bank floated D50 million for the six-month securities but received applications totaling D56.8 million. The entire D50 million on offer was accepted, leaving an oversubscription of D6.8 million.
For the 182-day bills, the weighted average price settled at 95.78, corresponding to an annual yield of 8.84 percent. Bid prices ranged between 95.10 and 96.50, according to the auction results.
Treasury bills are short-term government securities issued at a discount and redeemed at face value at maturity. In The Gambia, they are used by the government to raise short-term financing while providing investors with relatively low-risk investment instruments.
The results underscore sustained demand for government debt instruments in the domestic financial market, particularly for the longer-tenor 364-day securities.
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