T-bill auction: The government raises around GH¢5 billion; interest rates decline once more - Onlinetimesgh

T-bill auction: The government raises around GH¢5 billion; interest rates decline once more

Treasury bill demand increased as the money market’s interest rates continued to plummet. The government obtained about GH¢5 billion from the T-bills sale, approximately 33.8% oversubscription, according to the Bank of Ghana auction results. The 91-day bill was the source of some of the bids. Approximately GH¢3.825 billion, or 77.7%, were tendered. Every bid was approved.

The anticipated cost of the 182-day bill was GH¢822.39 million. The same was true of the uptake. A tender of GH¢272.62 million was submitted for the 364-day bill. Every bid was approved. In the meantime, the yield on the 91-day T-bill nearly decreased by 25 basis points to 25.0%, which caused interest rates to continue dropping.

Additionally, the 182-day bill’s interest rate dropped from 27.39% to 26.99% the previous week. However, at 27.99%, the yield on the 364-day bill stayed largely unchanged. The majority of economists predict that in order to pay for its expenses, the government would keep taking out large loans from the Treasury market.

SECURITIES

BIDS TENDERED (GH¢)

BIDS ACCEPTED (GH¢)

91 Day Bill

3.825 billion

3.825 billion

182 Day Bill

822.39 million

822.39 million

364 Day Bill

272.62 million

272.62 million

Total

4.920 billion

4.920 billion

Target

3.677 billion

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