T-bills auction: Government records marginal oversubscription; interest rates register mixed performance

Demand for treasury bills reduced slightly, though the government exceeded its treasury bills target marginally.

According to the Bank of Ghana’s auction results, the government recorded an oversubscription of just over 1%.

The Treasury received GH¢5.173 billion of the total bids, but accepted GH¢3.48 billion.

According to the auction results, the majority of the bids came from the 91-day instrument.

A little over GH¢2.9 billion of the bids were tendered, representing 70.5% of the total bids. The uptake was, however, about GH¢2.2 billion.

The 182-day bill received bids of about GH¢1.1 billion. The bids accepted were GH¢692.30.

For the 364-day bill, a little above GH¢1.1 billion in bids were tendered. The Treasury accepted GH¢ 587.61 million of the bids.

Meanwhile, interest rates recorded mixed performance on the yield curve.

The yield on the 91-day bill increased by 2.0 basis points to 4.62%.

Similarly, the yield on the 182-day bill went up to 6.31% from 6.27% the previous week.

However, the yield on the 364-day bill dropped by 4.0 basis points to 9.71%.