T-Bill Auction: Gov’t sees continuous demand despite sharp drop in interest rates
The government continues to see a sustained market confidence in treasury bills following a 144% oversubscription in the latest auction despite a decline in interest rates.
According to the Bank of Ghana’s latest auction results, total bids submitted across all three tenors amounted to GH¢17.11 billion, as against the government’s GH¢6.997 target, with accepted bids estimated at GH¢12.3 billion.
The 364-day bill saw strong investor participation, recording GH¢6.54 billion in bids. Authorities accepted GH¢5.97 billion from this tenor, representing 48.5% of the total bid accepted.
The 91-day bill received bids totaling GH¢5.91 billion, with GH¢2.79 billion accepted, while the 182-day bill attracted GH¢4.65 billion in bids, with the Treasury green ticking GH¢3.55 billion.
Meanwhile, borrowing costs declined across all three instruments.
The 91-day bill recorded a 10.83% weighted average interest rate, dropping 37 basis points from the previous week’s 11.20%.
The 182-day bill dropped 28 basis points off last week’s 12.67%, settling at 12.38%. Interest on the 364-day bill also saw a 24-basis point decline, falling from 13.07% to 12.82%.
The government has set a target of GH¢4.98 billion for the next sale of these debt instruments.
See Full Auction Results Below:
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