T-bills auction: Government records 60% oversubscription

Following a significant progress with the Domestic Debt Exchange (DDE) programme, government Treasury bills (T-bills) sale was oversubscribed by a significant 60.6% as investor confidence rebound.

According to the auction results published by the Bank of Ghana, government secured ¢2.053 billion from the short term securities.

Chunk of the funds, however, came from the 91-day T-bill, as the investors largely banks purchased ¢1.426 billion. However, government accepted ¢1.57 billion of the bids tendered.

- Advertisement -

The yield shot up slightly to 35.71%, from 35.63% the previous week.

For the 182-day T-bill, government accepted all the bids worth ¢491.45 million at an interest rate of 35.75%.

It also obtained ¢135.30 million from the sale of the 364-day T-bill at a price of 35.81%.

A carefully analysis shows that the yield remained virtually unchanged at 35%.

The sale of the short term securities have been mixed in the past few weeks.

- Advertisement -

However, the significant progress by the government on the DDE is expected to boost investor confidence in the treasury market going forward.

Securities Bid Tendered (GH¢) Bids Accepted (GH¢)
91 Day Bill 1.426 billion ¢1.357 billion
182 Day Bill ¢491.45 million ¢491.45 million
364 Day Bill ¢135.30 million ¢134.17 million
Total 2.053 billion 1.982 billion
Target ¢1.278 billion
Support
Share This Article
Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *