T-bill Auction: Gov’t sees sustained demand despite steep rate drops
Investor appetite for government-issued debt instruments has steadied over the past months with the government recording consecutive oversubscription to treasury bill auctions despite interest rates plummeting to record levels.
According to the latest Bank of Ghana auction results, the government recorded a 170% oversubscription, receiving bids worth GH¢25.2 billion, as against its GH¢9.3 billion original target, while accepting about GH¢11.4 billion.
The results indicate that a majority of the bids came from the 364-day bill, with an estimated GH¢9.37 billion tendered, representing about 37% of the total bids, with an uptake of about GH¢5.77 billion.
The 91-day bill also saw considerable participation, with investors submitting GH¢8.6 billion in bids, with the Treasury accepting a little over GH¢3.1 billion of these tenders.
The 182-day bill attracted about GH¢7.21 billion in bids, of which a little over GH¢2.4 billion was approved.
Meanwhile, interest rates plummeted across all tenors. The yield on the 91-day bill fell sharply by 215 basis points, dropping from 8.60% to 6.45%. Interest on the 182-day bill also dropped 242 basis points to 8.18%, down from last week’s 10.67%.
The yield on the 364-day bill also declined by 86 basis points to 10.20%, from the 11.06% recorded last week.
The Treasury has set a GH¢5.8 billion target for the next sale of these government-issued debt instruments.
See Full Auction Results Below:
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