T-Bill Auction: Gov’t records 89% oversubscription, rates hit record lows
The Treasury bill market has delivered another signal of sustained investor confidence following a 89% oversubscription to the government-issued debt instruments despite a continuous drop in interest rates.
According to the recent auction results released by the Bank of Ghana, the government received bids amounting to GH¢10.77 billion as against its GH¢5.67 billion original target, while accepting GH¢6.13 billion.
The short-term 91-day bill attracted the highest individual bid volume at GH¢5.211billion, of which about GH¢3.4 billion was accepted.
The 182-day bill also received GH¢1.95 billion in bids, the Treasury accepted a little over GH¢946 million.
The longer-term 364-day bill recorded considerable participation, attracting about GH¢3.59 billion in bids against an acceptance of GH¢1.72 billion.
Meanwhile, borrowing costs have declined consistently across all three tenors for more than 8 weeks.
The yield on the 91-day dropped 50 basis points off the 5.32% recorded last week, settling at 4.82%. The yield on the 182-day bill dropped 57 basis points to settle at 6.30%, down from last week’s 6.87%. Similarly, the weighted average interest rate for the 364-day bill was set at 9.34%, down 42 basis points from the 9.76% recorded last week.
The Treasury has set an GH¢8.13 billion target for the next sale of these debt instruments.
See Full Auction Results Below:
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