Government records ¢3.15bn from T-bills sale as interest rates fall

Following the exemption of Treasury bills from the domestic debt exchange programme, investor interest in the short-term securities continue to rise sharply.

This is coming after the government recorded about 73% oversubscription of T-bills sales.

According to auction results from the Bank of Ghana, the government obtained a total of ¢3.15 billion from the Treasury bills sale that took place on Friday, December 9, 2022.

This shows that demand for the money market instrument is soaring.

Though a chunk of the transaction came from the 91-day T-bill, the 182-day bill also recorded some significant sales.

This clearly shows that investor interest in the short-term securities is growing but at the expense of government bonds which has been affected by the domestic debt restructuring.

Liquidity in that regard has witnessed immense improvement for the third week running.

The bids tendered for the 91-day T-bills were estimated at ¢2.19 billion. The government however accepted ¢1.422 billion of the bids.

Again, the bids tendered for the 182-day T-bill were estimated at ¢986.61 million. ¢921.21 million was however accepted.

For the 364-day bill, ¢62.29 million worth of bids were tendered in, whilst ¢62.12 million were accepted.

Interest rates fall

Meanwhile, interest rates on the short-term market fell for the first time since January 2022.

Whilst the 91-day T-bill yield dropped by 0.54% to 35.58%, that of the 182-bill also fell to 36.5%, from 37.2% recorded a week ago.

If the trend continues, lending rates are expected to fall.

Below is the auction results published by the Bank of Ghana