T-bills auction: Government records 33% oversubscription for 3rd week running; interest rates rise

The government recorded 33% oversubscription of treasury bills, for the third week running.

This oversubscription is positive because the target was high, compared to a very reduced target in the previous week.

The government got GH¢9.2 billion, as against a target of GH¢6.9 billion. It, however, accepted GH¢8.5 billion of the total bids.

A little over 70% of the bids came from the 91-day bill.  About GH¢6.56 billion of the bids were tendered. The uptake was estimated at GH¢6.50 billion.

For the 182-day bill, GH¢1.32 billion of the bids were tendered. The bids accepted were estimated to the tune of GH¢1.27 billion.

Also, GH¢1.40 billion of the bids were tendered for the 364-day bill. A little over GH¢730 million of the bids were accepted.

 Meanwhile, interest rates rose on the 91-day and 364-day bill.

The yield on the 91-day bill increased by 3.0 basis points to 11.11%.

That of the 182-day bill dropped by a basis point to 12.54%, from 12.55% the previous week.

The yield on the 364-day bill however went up by 38 basis points to 13.08%.

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