T-bills: Government records 19% oversubscription, but interest rates rise

The government recorded a 19.0% oversubscription of treasury bills for the fifth week running.

The target for the auction was estimated at GH¢3.3 billion, but the government got GH¢3.95 billion, about 19.69% oversubscription.

It however accepted GH¢3.89 billion of the total bids.

According to auction results by the Bank o Ghana, a little over 61% of the bids came from the 91-day bill.  GH¢2.449 billion of the bids were tendered. The uptake was GH¢2.447 billion.

For the 182-day bill, GH¢781.43 million of the bids were tendered. The bids accepted were estimated to the tune of GH¢726.43 million.

Also, GH¢726.43 million of the bids were tendered for the 364-day bill. The same amount of the bids were accepted.

Meanwhile, interest rates increased across the yield curve.

The yield on the 91-day bill went up by a basis point to 11.09%.

That of the 182-day bill, also jumped to 12.52%, from 12.43% the previous week.

The yield on the 364-day bill rose by 3.0 basis points to 12.94%.