T-bills auction: Government exceeds target by 88%, interest rates tumble

The government exceeded its treasury bill target by 88 percent, as investor interest rose.

According to auction results by the Bank of Ghana, the government got a significant GH¢11.2 billion from the investors.

The government, however, accepted about GH¢4.88 billion of the bids.

The 91-day bill overtook the 364-day bill as the most patronised short-term instrument.

About GH¢5billion of the bids were tendered, representing 44.9% of the total bids. A little above GH¢4.0 billion of the bids were accepted.

The 364-day bill received bids worth GH¢4.9 billion. The uptake was, however, GH¢289.70 million.

The 182-day bill received bids of GH¢1.28 billion. A little above GH¢ 526 million was accepted.

Meanwhile, interest rates tumbled across the yield curve.

The yield on the 91-day bill went down by 16 basis points to 5.46%.

That of the 182-day bill also dropped to 7.27% from the previous week’s 7.57%.

Similarly, the yield on the 364-day fell by 48 basis points to 12.50%.