T-bill Auction: Gov’t records 253% oversubscription; interest rates in a nosedive
The government continues to enjoy a sustain demand for its domestic debt instruments as investors oversubscribed to treasury bills yet again, despite a sharp drop in interest rates over the past weeks.
According to the latest Bank of Ghana auction results, the government recorded a 253% oversubscription, receiving bids worth GH¢22.6 billion, as against its GH¢6.4 billion original target.
However, rejected bids worth GH¢13 billion, accepting about GH¢8.9 billion.
The results indicate that a majority of the bids came from the 364-day bill, with an estimated GH¢7.7 billion tendered, representing about 34.2% of the total bids, while authorities accepted GH¢3.4 billion.
The 91-day bill also saw considerable participation, with investors submitting GH¢7.6 billion in bids, with the Treasury accepting a little over GH¢3.4 billion of these tenders.
The 182-day bill attracted about GH¢7.2 billion in bids, of which a little over GH¢2 billion was approved.
Meanwhile, interest rates continued to fall across all tenors. The yield on the 91-day bill fell sharply by 136 basis points, dropping from 9.96% to 8.60%. Interest on the 182-day bill also dropped 144 basis points to 10.67%, down from last week’s 11.81%.
The yield on the 364-day bill also declined by 100 basis points to 11.06%, from the 12.06% recorded last week.
The Treasury has set a GH¢9.3 billion target for the next sale of these government-issued debt instruments.
See Full Auction Results Below:
About The Author
