T-Bill Auction: Gov’t records 155% oversubscription, rates hit all-time low
The Treasury bill market has delivered another signal of sustained investor confidence following a 155% oversubscription to the government-issued debt instruments despite interest rates reaching all-time lows across all tenors.
According to the recent auction results released by the Bank of Ghana, the government received bids amounting to GH¢14.82 billion as against its GH¢5.81 billion original target, while accepting GH¢8.806 billion.
The short-term 91-day bill attracted the highest individual bid volume at GH¢6.826 billion, of which about GH¢3.74 billion was accepted.
The 182-day bill also saw considerable participation, receiving GH¢2.82 billion in bids, with an uptake of a little over GH¢1.5 billion.
The longer-term 364-day bill attracted GH¢5.16 billion in bids against an acceptance of GH¢3.53 billion.
Meanwhile, the surge in demand was accompanied by a broad-based continued decline in interest rates across all three tenors.
The 182-day bill recorded the steepest drop, shedding 120 basis points to settle at 6.97%, down from last week’s 8.18%. The yield on the 91-day also dropped 113% basis points off the 6.45% recorded last week, settling at 5.32%.
Similarly, the weighted average interest rate for the 364-day bill was set at 9.76%, down 44 basis points from 10.20% recorded last week.
The Treasury has set a GH¢5.67 billion target for the next sale of these debt instruments.
See Full Auction Results Below:
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