T-bills auction: Government records 110% oversubscription but at a reduced target; 91-day yield increases

The government recorded 110% oversubscription of treasury bills, the first time in seven weeks.

This is a result of the Treasury’s reduced target and not necessarily increased bids.

The government got GH¢6.03 billion, as against a target of GH¢2.86 billion. It, however, accepted GH¢5.78 billion of the total bids.

A little over 42% of the bids came from the 91-day bill. About GH¢2.57 billion of the bids were tendered. The uptake was GH¢2.56 billion.

For the 182-day bill, GH¢1.64 billion of the bids were tendered. The bids accepted were estimated to the tune of GH¢1.62 billion.

Also, GH¢1.81 billion of the bids were tendered for the 364-day bill. A little over GH¢1.58 billion of the bids were accepted.

Meanwhile, interest rates were mixed on the yield curve, despite a 350 basis points drop in the Bank of Ghana’s policy rate.

The yield on the 91-day bill increased marginally to 11.05%.

That of the 182-day bill, however, went down to 12.43%, from 12.66% the previous week.

The yield on the 364-day bill remained unchanged at 13.08%.