Government Sees 33% Oversubscription in T-Bills Auction Amid Rising Interest Rates

Government’s treasury bill auction continues to attract strong investor confidence, recording a 33% oversubscription for the third consecutive week.

This positive outcome comes despite a higher target set for this week’s auction, a significant shift from the reduced targets seen in prior weeks. The strong demand underscores growing appetite for government securities.

According to data released by the Bank of Ghana, the government aimed to raise GH¢6.9 billion but successfully garnered GH¢9.2 billion in bids. However, it accepted a total of GH¢8.5 billion to manage its borrowing costs.

The 91-day bill remained the most favoured, attracting over 70% of the total bids, amounting to approximately GH¢6.56 billion. The government accepted GH¢6.50 billion from this tranche.

For the 182-day bill, bids tendered totalled GH¢1.32 billion, with approximately GH¢1.27 billion being accepted. The 364-day bill saw GH¢1.40 billion in bids, but the government only accepted GH¢734 million.

Meanwhile, interest rates experienced mixed movements. The yield on the 91-day bill rose by 3.0 basis points to 11.11%, indicating a slight increase in borrowing costs for the short-term instrument.

Conversely, the yield on the 182-day bill edged down by 1 basis point to 12.54%, from 12.55% the previous week. The yield on the 364-day bill, however, saw a more substantial increase of 38 basis points, settling at 13.08%.

Securities Breakdown:

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