T-bills auction: Government records 13.6% oversubscription, but at higher cost

The government achieved a 13.61% oversubscription of its treasury bills auction for the second week running.

Yet again, this came at a higher cost as interest rates surged on the yield curve.

According to auction results by the Bank of Ghana, the government got GH¢8.4 billion, but accepted GH¢8.29 billion of the bids.

The 91-day bill was once again the most subscribed, as GH¢6.03 billion of the bids were tendered, representing 71.5% of the total bids. All the bids were accepted.

The 182-day bill recorded bids of about GH¢1.1 billion. A little above GH¢1.0 billion was accepted.

For the 364-day bill, GH¢1.29 billion of the bids were tendered. A little over GH¢1.04 billion were accepted.

Meanwhile, interest rates were mixed on the yield curve.

The yield on the 91-day bill went up by 3.0 basis points to 5.04%.

That of the 182-day bill, however, dropped to 7.08% from 7.09% from the previous week.

The yield on the 364-day nonetheless increased by 14.0 basis points to 10.97%.