T-Bill Auction Sees 19% Oversubscription as Yields Rise

Ghana’s treasury bills have seen a 19% oversubscription for the fifth consecutive week, albeit with a reduced target. The government received approximately GH4.7 billion in bids but accepted a little over GH4.72 billion of the short-term instruments.

The auction target was estimated at GH3.9 billion, indicating a continued interest in the short-term government securities. A significant portion, about 40%, of the bids came from the 91-day bill, with GH1.948 billion of the bids tendered and an uptake of GH1.943 billion.

The 182-day bill saw GH1.2 billion in bids tendered, with GH1.0 billion accepted. For the 364-day bill, GH1.60 billion in bids were tendered, with GH1.26 billion accepted.

Meanwhile, interest rates have surged across the shorter end of the market. The yield on the 91-day bill increased by 7.0 basis points to 11.16%. The 182-day bill’s yield went up to 12.55%, from 12.52% the preceding week. However, the yield on the 364-day bill declined by a basis point to 12.93%.

Image Source: MYJOYONLINE