T-bill Auction: Gov’t records 61% oversubscription as rates continue to climb
The government continues to see strong a strong demand for its domestic debt instruments as investors oversubscribe to treasury bills for two consecutive months accompanied by a steady rise in interest rates.
According to the latest Bank of Ghana auction results, the government recorded a 61% oversubscription, receiving bids worth GH¢15.91 billion, as against its GH¢9.825 billion target, but accepted about GH¢12.8 billion of these bids.
The results indicate that a chunk of the bids came from the 364-day bill, with an estimated GH¢7.4 billion tendered, representing about 46.8% of the total bids, while authorities accepted a little over GH¢5 billion.
The 91-day bill also saw considerable participation, with investors submitting GH¢4.1 billion in bids, with the Treasury accepting GH¢3.4 billion of these tenders.
The 182-day bill attracted about GH¢4.29 billion in bid, of which GH¢4.28 billion was approved.
Meanwhile, interest rates for the medium and longer-term tenors continued a steady rise along the yield curve. While the yield on the 91-day bill remained at last week’s 11.19%, interest on the 182-day bill saw a 2-basis point increase, rising to 12.66%, from 12.64%.
The yield on the 364-day bill also climbed by 8 basis points to settle at 13.06%.
The Treasury has set a GH¢6.9 billion target for the next sale of these government-issued debt instruments.
See Full Auction Results Below:
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