T-bill Auction: Gov’t records 7% oversubscription as rates continue dip
Investors continue to show an interest in government-issued debt instruments following a consistent oversubscription to treasury bill auctions over the past months despite interest rates dropping to record lows.
According to the latest Bank of Ghana auction results, the government recorded a marginal 7.4% oversubscription, receiving bids worth GH¢8.7 billion, as against its GH¢8.1 billion original target, while accepting about GH¢7.99 billion.
Compared to the significant oversubscriptions recorded over the previous weeks, this marginal oversubscription shows that investor interest in treasury bills went down as a result of the low returns.
The results indicate that majority of the bids came from the 91-day bill, with an estimated GH¢6.15 billion tendered, representing about 70% of the total bids, with an uptake of about GH¢5.88 billion.
The 182-day bill also saw considerable participation, with investors submitting a little over GH¢2 billion in bids. The Treasury accepted GH¢1.6 billion of these tenders.
The 364-day bill attracted just GH¢529 million in bids, of which authorities accepted GH¢480 million.
Meanwhile, for the first time in nearly 3 months, interest on the 364-day bill showed signs of recovery while those of the short and medium-term tenors continue to fall.
The yield on the 91-day bill fell sharply by 11 basis points, dropping from 4.82% to 4.71%. Interest on the 182-day bill also dropped 2 basis points to 6.28%, down from last week’s 6.30%.
The yield on the 364-day however edged up by 6 basis points, climbing to 9.40%, from the 9.34% recorded last week.
The Treasury has set a GH¢5 billion target for the next sale of these government-issued debt instruments.
See Full Auction Results Below:
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