T-bill Auction: Gov’t records 246% oversubscription but rates continue to tumble
The government continues to see strong a strong demand for its domestic debt instruments as investors oversubscribed to treasury bills for two consecutive months, despite a consistent drop in interest rates.
According to the latest Bank of Ghana auction results, the government recorded a 246% oversubscription, receiving bids worth GH¢17.2 billion, as against its GH¢4.9 billion original target, but accepted about GH¢5.8 billion of these bids.
The results indicate that a majority of the bids came from the 364-day bill, with an estimated GH¢6.944 billion tendered, representing about 40.2% of the total bids, while authorities accepted GH¢2.0 billion.
The 91-day bill also saw considerable participation, with investors submitting GH¢6.57 billion in bids, with the Treasury accepting a little over GH¢2.5 billion of these tenders.
The 182-day bill attracted about GH¢3.724 billion in bids, of which GH¢1.3 billion was approved.
Meanwhile, interest rates continued their downward trajectory across all tenors. The yield on the 91-day bill fell sharply by 86 basis points, dropping from 10.82% to 9.96%. Interest on the 182-day bill also dropped 57 basis points to 11.81%, from last week’s 12.38%.
The yield on the 364-day bill also declined by 76 basis points to 12.06%, down from the 12.82% recorded last week.
The Treasury has set a GH¢6.4 billion target for the next sale of these government-issued debt instruments.
See Full Auction Results Below:
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