T-bills auction: Government exceeds target marginally; interest rates decline

The government exceeded its treasury bills target marginally compared with the previous weeks’ high oversubscription.

According to the auction results by the Bank of Ghana, the government recorded a 2.8% oversubscription of the short-term securities to the tune of GH¢8.1 billion.

The government, however, accepted GH¢7.2 billion of the bids. The target for the auction was GH¢7.9 billion.

The 91-day bill was the most subscribed as GH¢4.56 billion of the bids were tendered, representing 55% of the total bids.

However, the uptake was GH¢4.52 billion.

For the 182-day bill, GH¢2.07 billion of the bids were tendered. The bids accepted were estimated to the tune of GH¢1.81billion.

Similarly, the 364-day bill saw bids of GH¢1.56 billion tendered. The uptake was GH¢ 867.93 million.

Meanwhile, interest rates continued to dip on the yield curve.

The yield on the 91-day bill went down by 11 basis points to 4.69%.

That of the 182-day also declined to 6.51% from 6.67% the previous week.

Similarly, the yield on the 354-day bill dropped a basis point to 10.10%.